Answer:
The C which is relevant for this strategy from the 6 Cs is the Cost.
Explanation:
The channel distribution is the path which a product or service takes in order to reach the consumer. It allows the direct channel so that consumers buy directly from the manufacturer.
The channel distribution strategy is the Cost which is stated as the cost of the product. So, the storing goods, providing credit, sales representation and transporting related to the Cost.
The correct answer is: c) coverage. Transporting and storing goods, breaking bulk, providing credit, local advertising, sales representation, and negotiations with middlemen most directly relate to coverage.
Coverage refers to the breadth and intensity of distribution achieved through a channel. It focuses on how well the product or service reaches the target market.
The activities listed all directly impact how widely and effectively a product reaches its target audience:
Transporting and storing goods: Ensures physical availability in different locations.
Breaking bulk: Allows for smaller quantities to reach various retailers.
Providing credit: Enables wider customer reach by offering financing options.
Local advertising: Directly targets customers in specific regions.
Sales representation: Represents the product to potential buyers.
Negotiations with middlemen: Secures partnerships with distributors to expand reach.
While other Cs of the channel strategy are also relevant:
Cost: Refers to the economic efficiency of the channel.
Control: The level of influence a company has over the channel members.
Character: The image the channel portrays of the product or service.
Continuity: Maintaining consistent availability and service throughout the channel.
Coverage most directly encompasses the activities listed because it focuses on ensuring the product reaches the target market through various means.
The complete question is- Transporting and storing goods, breaking bulk, providing credit, local advertising, sales representation, and negotiations with middlemen most directly relate to which of the six Cs of the channel distribution strategy?
a) cost
b) control
c) coverage
d) character
e) continuity
Which of the following best describes a fundamental assumption when monetary policy is used to influence the economy?
A. Financial markets are efficient.
B. Money is not neutral in the short run.
C. Official rates do not affect exchange rates.
Answer: Option B
Explanation: In simple words, money neutrality refers to the theory that states change in the stock of money will only result in change in nominal variables such as prices, wages etc and will have no impact on real variables such as employment, real GDP etc.
As we know that monetary policy is implemented usually in situation of inflation and deflation. Thus, it will be no use to implement it to position macroeconomic factors such as employment etc if the money is neutral in short run.
What event in 2011 caused manufacturers in several industries worldwide to wait 6 months or longer to see their supply chains working normally again?
A. German tornado
B. Chinese flood
C. U.S. hurricane
D. Japanese earthquake and tsunami
Answer:
D) Japanese earthquake and tsunami
Explanation:
On March 11, 2011, a 9.1 magnitude earthquake occurred a couple hundred miles from Tokyo in the ocean. This earthquake caused a huge tsunami (30 feet high) that damaged large coastal areas in Japan, including several nuclear reactors and factory centers for major corporations like Toyota, Honda, Nissan, Toshiba, Sony, Canon, etc.
You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and collecting a $0.75 per share dividend. Your ordinary income tax rate is 28% and your capital gains tax rate is 20%. Your after-tax rate of return is _________.
Answer:
The answer is: After-tax rate of return = 9.8% .
Explanation:
Please find the calculations which are shown in details as below:
Pre-tax dividend earning is $0.75, Tax rate on ordinary income is 28% => After-tax dividend earning = 0.75 x (1 - 28%) = $0.54;
Pre-tax capitals gain is $3 ( that is, $33 -$30), tax rate on capital gains is 20% => After-tax capital gains = 3 x ( 1 - 20%) = $2.4 ;
=> Total after-tax return = After-tax capital gains + After-tax dividend earning = 2.4 + 0.54 = $2.94 .
Thus, in percentage term, after-tax rate of return is 2.94/30 = 9.8%.
Final answer:
To find the after-tax rate of return, we calculate the after-tax capital gain and the after-tax dividend, sum them up, and divide by the purchase price, yielding a 9.8% return.
Explanation:
To calculate the after-tax rate of return on a stock investment, we must consider both the dividend income and the capital gains, and then adjust for taxes. You purchased the stock at $30 per share and sold it at $33 per share, with a capital gain of $3 per share. Additionally, you received a $0.75 per share dividend. Since the holding period was over a year, the capital gains tax rate of 20% and the ordinary income tax rate of 28% will apply to each component respectively.
Calculating the capital gains tax:
Capital Gain = Selling Price - Purchase Price = $33 - $30 = $3 per share
Capital Gains Tax = Capital Gain x Capital Gains Tax Rate = $3 x 20% = $0.60 per share
Calculating the tax on dividends:
Dividend Tax = Dividend x Ordinary Income Tax Rate = $0.75 x 28% = $0.21 per share
Now, let's calculate the after-tax return:
After-Tax Capital Gain = Capital Gain - Capital Gains Tax = $3 - $0.60 = $2.40 per share
After-Tax Dividend = Dividend - Dividend Tax = $0.75 - $0.21 = $0.54 per share
Total After-Tax Return = After-Tax Capital Gain + After-Tax Dividend = $2.40 + $0.54 = $2.94 per share
The after-tax rate of return is calculated as follows:
After-Tax Rate of Return = (Total After-Tax Return / Purchase Price) x 100
= ($2.94 / $30) x 100 = 9.8%
A business practice associated with globalization involves businesses moving manufacturing and service centers to countries where labor is cheap. This practice is commonly known as:
A. Relocation
B. Restructuring
C. Economizing
D. Outsourcing
Answer:
Outsourcing.
Explanation:
Outsourcing is a process to get the work done from a foreign supplier at a cheaper rate without or minimum compromising on the quality of work. Outsourcing is done by companies of those countries, where labour rate is high or scarcity of labour in the national market. It also diverse the culture of companies. Work which are outsourced to other countries are mainly non fundamental and its role is to provide support to the core company.
Charlotte and Regina are opening a new business venture to sell gourmet cupcakes. One of the important characteristics in starting a limited liability company is:
a. limited liability for members.
b. the amount of start-up capital required.
c. choosing the name.
d. the number of shareholders.
Answer:
a. limited liability for members.
Explanation:
One of the important if not the most important characteristics in starting a limited liability company is limited liability for members, since the whole company structure revolves around this aspect. This refers to the shareholders being responsible for any debt incurred by the company, but only to the extent of their company shares.
The responsibility report of Alejandro Garcia, the manager of one of the divisions of an auto parts manufacturing company, includes profits as well as return on investment and residual income. Alejandro is most likely the manager of a(n)_________.A. revenue center B. investment center C. cost center D. profit center
Answer:
B. investment center
Explanation:
Investment center is a business unit which contributes directly to the profitability of company using the capital the company provided.
Therefore, Alejandro is most likely the manager of a investment center.
A company wants to determine its reorder point (R). Demand is variable and the company wants to build a safety stock into R. If the average daily demand is 12, the lead time is 5 days, the desired z value is 1.96, and the standard deviation of usage during lead time is 3, which of the following is the desired value of R?
Answer:
66 units
Explanation:
Now lets do it part by part shall we,
(12 x 5) + (3 x 1.96)
12 x 5 = 60
3 x 1.96 = 5.88
Now to add it all up
60 + 5.88 = 65.88 = 66
The reorder point (R) is calculated using the formula R = Average daily demand x Lead time + Desired z value x Standard deviation of usage during lead time. Given an average daily demand of 12, a lead time of 5 days, a desired z value of 1.96, and a standard deviation of usage during lead time of 3, the reorder point equals about 66 units when rounded up to the nearest whole number.
Explanation:The reorder point (R) of a company is calculated when the average daily demand, the lead time, the desired z value, and the standard deviation of usage during the lead time are known. The formula to calculate this is:
R = (Average daily demand x Lead time) + (Desired z value x Standard deviation of usage during lead time)
Using the values given: R = (12 units/day x 5 days) + (1.96 z value x 3 units) = 60 units + 5.88 units = 65.88 units
Therefore, the company's desired reorder point (R), including a safety stock, would approximately be 66 units when rounded up to the nearest whole number.
Learn more about Reorder Point here:https://brainly.com/question/33886505
#SPJ6
The controller of Hartis Corporation estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: Wall Mirrors Specialty Windows Total expected units produced 8,000 7,000 Total expected material moves 300 900 Expected direct labor-hours per unit 5 7The total materials handling cost for the year is expected to be $38,448. If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to:
a. $28,836
b. $22,428
c. $19,224
d. $18,752
Answer:
a. $28,836
Explanation:
Total Material Moves (300 + 900) 1200
Rate per material move (38488/1200) 32.07333333
Allocated material moves for material handling
wall mirrors (38488/1200*300) 9622
Speciality windows (38488/1200*900) 28866
38488
Therefore, The material handling cost allocated to the speciality windows is closest to $28,836.
The total materials handling cost allocated to the Specialty Windows, based on the material moves, is approximately $28,836.
Explanation:The allocation of material handling costs is a cost accounting problem where costs are split based on the cause-and-effect relationship. In this case, materials handling cost is allocated based on material moves. The total number of material moves is 1200 (300 for Wall Mirrors + 900 for Specialty Windows). So, the cost allocated per material move would be the total materials handling cost divided by total material moves, which is $38,448 / 1200. This gives us $32.04 per material move.
Now, for Specialty Windows, as there are 900 material moves, the total materials handling cost allocated to them would be 900 X $32.04, which approximates to $28,836.
Learn more about Cost Allocation here:https://brainly.com/question/34659373
#SPJ11
When a dividend is not declared on preferred stock, and the common shareholders cannot receive a dividend until all past and current dividends are paid to the preferred shareholders, the preferred stock is:
Answer:
cumulative.
Explanation:
Cumulative preferred stock is defined as a type of stock that states that if any dividend payments have been missed the first payment of the owed dividends must be done to cumulative preferred shareholders in first instance
Kinsi Corporation manufactures three different products. All five of these products must pass through a stamping machine in its fabrication department. This machine is Kinsi's constrained resource. Kinsi would make the most profit if it produces the product that:
A. uses the lowest number of stamping machine hours.
B. generates the highest contribution margin per unit.
C. uses the highest number of stamping machine hours.
D. generates the highest contribution margin per stamping machine hour.
Answer:
D.
Explanation:
Based on the information provided within the question it can be said that the Kinsi would make the most profit if it produces the product that generates the highest contribution margin per stamping machine hour. In other words producing products that provide higher profits after discounting all the costs associated with production, for every machine hour of stamping.
Daniel shares the details of a recent enjoyable trip to friends. The trip was arranged by a travel firm, and he recommends to his friends that they contact the same travel firm, noting the firm offers customized packages. Identify the media that best represents the communication by Daniel.
Answer:
earned media
Explanation:
Earned media is free publicity for a company. Since the company provided such a good service to Daniel, he is willing to tell his friends to use that same company when they plan a trip. Before we used to call this word of mouth publicity but since people now are more involved with social media than actual personal relations, the term has changed to earned media or online word of mouth.
This type of publicity is by far the most effective since Daniel's friends know that he is being sincere and that he probably had a very good time during his trip. No type of paid advertisement can match that.
The question primarily delves into the types of media used for communication. In Daniel's case, he either uses interpersonal (oral) communication or digital media, depending on the medium he uses to share his travel experience. His interaction also indirectly plays a role in advertising the travel firm's services.
Explanation:In the context of Daniel sharing the details of his enjoyable trip arranged by a travel firm with his friends, the media that represents his communication could be considered as oral communication or interpersonal communication. Here, Daniel uses direct, face-to-face conversation to share his experience and recommendation. However, if Daniel opts to share this information over digital platforms such as social media, it could also be classified as digital media in the form of social networking.
It is also interesting to note that while the conversation seems informal and personal, it indirectly serves as a form of advertising for the travel firm and promotes their customized packages. This aligns with the concept of word-of-mouth marketing increasingly acknowledged in the business and media fields.
Learn more about Media and Communication here:https://brainly.com/question/30608901
#SPJ11
The role making phase of development is a two-way exchange between the boss and the subordinate and is characterized by negotiation.a. true.b. false.
Answer:
True
Explanation:
Role making is developing a trust in between the manager and that of a new employee or team member. This basically moves in the direction that the manager expects the new employee to perform good as initially he has some new talent and caliber.
This involves the exchange of knowledge and information in between the boss and his subordinate about the work agenda and the performance desired. This reflects a negotiation.
If a prospective buyer intends to occupy a single-family home as a residence, the agent should realize this fact could have a direct bearing on_______________.
Answer:
damages, should the buyer default.
Explanation:
Prospective buyer is the one who intends to buy.
Agent is the one who provides the facility of making the deal feasible, for buyer as by providing options to buy, and finding deals within the reasonable price range.
In any case if the buyer makes any kind of default there will be damages which the agent will bear.
Thus, while making the deal the agent shall realize that these things can happen.
Anthony is in his senior year of college. He spends time creating a LinkedIn page so recruiters can more easily find him. He also goes to the university sponsored meet the firms" nights to become more acquainted with people in the corporate world. In this scenario, Anthony is investing in his"
Answer:
social capital
Explanation:
Social capital refers to your social relationships and the factors that may affect how you are perceived by your social group and how you interact with them.
In this case, since Anthony is about to graduate he wants to know some potential recruiters and/or fellow coworkers. When you graduate your world changes and the organization that you will work for becomes a very important part of your social environment and people have to learn to deal with the benefits and problems that come with such an important change.
W. L. Gore is the company that created Gore-Tex among many other innovative products. W.L.Gore employees (known as associates) don’t have titles or bosses in the traditional sense. Instead, associates make commitments to work on projects that they believe are most worthy of their time. At W.L. Gore, few leaders are appointed; leaders simply emerge as needed by the other employees or the project itself. The Gore company more than likely adheres to the ____ theory of leadership.
a.Contingency
b.Normative
c.Strategic
d.Trait
e.Visionary
Answer:
a.Contingency
Explanation:
The Contingency theory of leadership is a theory that establishes that a leader is successful when the style used fits the situation. This theory states that the best leadership style is the one that best adapts to the context. So, the Gore company more than likely adheres to the contingency theory of leadership because their leaders are not chosen but emerge according to the project they are working on and by other employees.
The Gore company more than likely adheres to the Contingency theory of leadership. Hence the correct option is a.
W.L. Gore's approach to leadership aligns with the contingency theory. This theory emphasizes that effective leadership is contingent upon various factors, such as the specific situation, the nature of the task, and the characteristics of the followers. In the case of W.L. Gore, the absence of traditional titles and bosses reflects a flexible and situational leadership model.
Associates at Gore make commitments to projects based on their perceived value and relevance rather than following a predetermined hierarchical structure. This flexible and adaptive leadership approach allows leaders to emerge organically as needed, adapting to the dynamic nature of projects and employee expertise. The contingency theory recognizes the importance of tailoring leadership styles to fit the specific context and needs of the organization, which is evident in W.L. Gore's unique leadership philosophy. Hence the correct option is a.
For more questions on leadership
https://brainly.com/question/25996547
#SPJ6
Minako works for a large appliance manufacturing company that offers a tax-deferred retirement savings plan to each of its employees. Minako designates 10 percent of her paycheck; her employer matches $.40 for each dollar Minako investments in the plan. This type of plan is known as a(n) ____. a Roth Retirement Plan b 401(k) plan c non-traditional IRA d traditional IRA.
Answer:
The answer is letter B
Explanation:
This type of plan is known as 401(k) plan.
Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units. The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400. The deadweight loss of the tax is
a. $200.
b. $400.
c. $600.
d. $1,200.
Answer:
option (c) $600
Explanation:
Given:
Tax = $4 per unit
Initial equilibrium quantity = 2,000 units
Final equilibrium quantity = 1,700 units
Decrease in consumer surplus = $3,000
Decrease in consumer surplus = $4,400
Now,
Deadweight Loss is calculated using the formula:
Deadweight loss
= [tex]\frac{1}{2}[/tex] × Tax × (Original equilibrium quantity - New equilibrium quantity)
on substituting the respective values, we get
Deadweight loss = [tex]\frac{1}{2}[/tex] × 4 × (2,000 - 1,700)
or
Deadweight loss = 2 × (3) = $600
Hence,
the correct answer is option (c) $600
The deadweight loss of the tax is $600. The correct answer is option c. $600.
Step 1
The deadweight loss (DWL) of a tax is the loss of economic efficiency that occurs when the tax causes the equilibrium quantity of a good to be reduced. The DWL can be calculated using the formula for the area of a triangle:
[tex]\[ \text{DWL} = \frac{1}{2} \times \text{Tax per unit} \times \text{Reduction in quantity} \][/tex]
Given:
- Tax per unit: $4
- Reduction in quantity: [tex]\( 2,000 - 1,700 = 300 \)[/tex]
Step 2
Calculation:
[tex]\[ \text{DWL} = \frac{1}{2} \times 4 \times 300 \][/tex]
[tex]\[ \text{DWL} = \frac{1}{2} \times 1,200 \][/tex]
[tex]\[ \text{DWL} = 600 \][/tex]
The deadweight loss represents the lost economic welfare due to the tax. It is calculated as half the product of the tax per unit and the reduction in the equilibrium quantity of the good. This calculation accounts for the area of the triangle formed by the reduction in quantity and the tax imposed.
A company purchased manufacturing equipment 5 years ago for $50,000. Accumulated depreciation is currently $45,000 and the remaining useful life is 3 years. The equipment incurs annual operating costs of $30,000. The company is considering replacing the equipment. The new equipment will cost $75,000, have a useful life of 3 years, and is more efficient and, therefore, only costs $10,000 to operate each year. The vendor is willing to accept the old equipment with a trade-in allowance of $10,000. The company should
Answer:
The company should keep their old equipment because if they buy the new equipment their cash flow will decrease by $5,000
Explanation:
If the company keeps the old equipment their costs will be:
$30,000 x 3 years = $90,000
total costs = $90,000
If the company buys the new equipment their costs will be:
equipment cost = $75,000 - $10,000 = $65,000
$10,000 x 3 years = $30,000
total costs = $95,000
The Company should not replace the old equipment due to the decrease in net income of the amount of $5,000.
Total decrease in net incomeReduction in costs=(30,000-10,000)×3 years
Reduction in costs= $20,000 x 3 years
Reduction in cost= $60,000.
Total decrease in net income=($75,000) + 10,000 + 60,000
Total decrease in net income= ($5,000)
Based on the above calculation the Company should not replace the old equipment.
Inconclusion the Company should not replace the old equipment due to the decrease in net income of the amount of $5,000.
Learn more about Total decrease in net income here:https://brainly.com/question/10955397
Chan has been happily married to Mei Lin for the last five years and is very secure in their relationship. Over the last year, he has worked very hard to try to get a bonus and recognition from his job. According to Maslow, Chan has achieved the love level and is attempting to reach the _____ level.
Final answer:
According to Maslow's hierarchy of needs, Chan has achieved the love level and is now attempting to reach the respect level so the blank will be filled with the word respect.
Explanation:
According to Maslow's hierarchy of needs, the love level represents the need for belongingness and intimate relationships. Chan has achieved this level by being happily married to Mei Lin for the last five years. Now, he is attempting to reach the respect level, which refers to understanding another person's full potential and the realization of that potential. It may be expressed in various ways, such as becoming an ideal husband, ideal parent, or in many other ways.
_____, a type of transit advertising, are printed on high-grade cardboard and often varnished for weather resistance. They are most widely used on the side, rear, and front of a bus.
Answer: Outside Posters
Explanation:
OUTSIDE POSTERS is a type of transit advertising, that are printed on high-grade cardboard and often varnished for weather resistance. They are most widely used on the side, rear, and front of a bus.
The outside posters are well suited for external use and are easy to see as the characters of the write up are very visible. The outside posters are targeted at the consumers of the product as they are on their daily move.
The ______ approach gives upper management a quick but thorough view of the organization via four indicators:
customer satisfaction,
internal processes,
innovation and improvement activities,
and financial measures.
Answer: Balanced scorecard
Explanation:
The balanced scorecard is referred to as the strategy administration management method. It is also known to be a semi structured report. It is foremost utilized by the employees i.e. managers of the organization in order to keep the records of implementation and enforcement of the activities, which are undertaken by their employees within the authority and control , so as to monitor the circumstances arising from this.
Gary invested $1,000 in large U.S. stocks. This investment earned 15.05 percent in 2012, 33.35 percent in 2013, 11.50 percent in 2014, and 2.10 percent in 2015. What return did he earn in the average year during the 2012–2015 period?
Answer:
The answer is: Average return Gary earned is 14.97%.
Explanation:
Please find the below for detailed explanation and calculations:
The total increase of Gary's investment in large U.S. stocks from 2012 to 2015 is calculated as : (1+15.05%) x (1+33.35%) x (1+11.50%) + (1+ 2.10%) = 1.747 times. That is, he will get 1,000 x 1.747 = $1,747 at the end of 2015.
The average return of Gary's investment in large U.S. stocks from 2012 to 2015 ( 4 year period) is: [ (The fourth root of 1.747) - 1] x 100% =14.97%.
Bonita Industries wishes to issue $6900000 (par value) of its 7%, 10-year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 12%. Using the interest factors below, compute the amount that Bonita will realize from the sale (issuance) of the bonds.
Answer:
The amount that Bonita will realize from the sale is $4,950,673.06
Explanation:
Hi, first, we need to find the amount to be paid by the bond (coupon), that is 7%*$6,900,000=$483,000. Now, we can use the following formula.
[tex]Price=\frac{Coupon((1+YTM)^{n}-1) }{YTM(1+YTM)^{n} } +\frac{FaceValue}{(1+YTM)^{n} }[/tex]
Where:
YTM = 0.12
n = 10
Face Value = $6,900,000
Coupon = $483,000
Price = what Bonita
Therefore:
[tex]Price=\frac{483,000((1+0.12)^{10}-1) }{0.12(1+0.12)^{10} } +\frac{6,900,000}{(1+0.12)^{10} }=4,950,673.06[/tex]
Best of luck.
In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order release (order size) for a week is 2000 units.
Which of the following is the capacity requirement for a week at Work Center B?
a. 101b. 151c. 201d. 251
Answer:
201 hours.
Explanation:
Given: Order size of work for a week is 2000 units.
Setup time is 1 hour.
Now, lets calculate the capacity requirement for a week at work centre B.
Formula; Capacity= [tex][set\ up\ time+(labour\ per\ unit \times total\ unit\ of\ work)][/tex]
Substitute the value in the formula.
⇒Capacity= [tex][1+ (0.10 \times 2000)][/tex]
⇒ Capacity= [tex][1+(200)] = 201\ hours[/tex]
∴ 201 hours is the capacity requirement for a week at work centre B.
Anderson Corporation has purchased a group of assets for $ 15,600. The assets and their relative market values are listed below.
Land: $7,400
Equipment: $2,600
Building: $3,400
Which of the following amounts would be debited to the Land account? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A: $4,467
B: $2,964
C: $3,900
D: $8,580
Answer:
D: $8,580
Explanation:
Land = $7,400*$ 15,600/13400
= $8,580
Therefore, The amounts would be debited to the Land account is $8,580.
To determine the debit amount to the Land account when several assets are acquired for a lump sum, you need to proportionally distribute the total purchase price between the assets based on their market values. In this case, by proportionally distributing the $15,600 purchase price, we get a debit amount for the Land account of $8,615.
Explanation:The key to solving this problem involves understanding proportionate distribution. When several assets are acquired for a lump sum, we divide the cost of each asset according to its market value. Here are the key steps:
Unfortunately, none of the provided options matches this calculation. The answer is $8,615.
Learn more about Proportionate Distribution here:https://brainly.com/question/34870126
#SPJ11
Which of the following changes would bring the U.S. capital stock, currently below the Golden Rule level, closer to the steady-state, consumption-maximizing level?
- increasing the population growth rate
- increasing the saving rate
- increasing the rate of capital depreciation
- increasing the rate of technological progress
Answer:
The answer is increasing the saving rate
Explanation:
Increasing the saving rate.
At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses a ________ inventory control system.
Answer: JIT
Explanation:
The JIT inventory control system is one of the type of management strategy that hold the sufficient inventories for maximize the demand of the market.
The JIT inventory control system is also known as time inventory as it overall reduce the inventory amount in the business.
The main purpose of using the JIT inventory control system is that it improve the quality and productivity. This system is the the most cost-effective technique for holing the stocks.
Therefore, JIT is the correct answer.
You are evaluating a project that will cost $500,000, but is expected to produce cash flows of $125,000 per year for 10 years, with the first cash flow in one year. Your cost of capital is 11% and your company’s preferred payback period is three years or less.
1. What is the payback period of this project?
2. Should you take the project if you want to increase the value of the company?
Answer:
1. 4 years
2. No
Explanation:
Payback period calculates the amount of time to recoup the total investment made on a project. It calculates how long the cash flows generated from a project would cover the cost of the project.
The cost of the project is $500,000
Cash flows are $125,000 per year for 10 years.
In the first year, the cost of the project is reduced by $125,000 and becomes $375,000.
In the second year, the cost of the project is reduced by $125,000 and becomes $250,000.
In the third year, the cost of the project is reduced by $125,000 and becomes $125,000.
In the fourth year, the cost of the project is reduced by $125,000 and becomes $0.
The cost of the project is totally recouped in the 4th year. therefore, the payback period is 4 years.
But the company has a preferred payback period of 3 years ,therefore , the firm won't undertake the project because the payback period is more than 3 years.
Final answer:
The project has a payback period of 4 years, which is longer than the company's preferred 3 years. However, the decision to proceed with the project should also be based on the positives NPV to determine if it will increase the value of the company.
Explanation:
Calculating the Payback Period
The payback period refers to the time it takes for an investment to generate an amount of money equal to the cost of the investment itself. To calculate the payback period for the given project, you divide the initial investment ($500,000) by the annual cash flow ($125,000). This results in a payback period of 4 years (500,000 / 125,000 = 4).
Value Increase for the Company
Whether or not to undertake the project requires consideration beyond just the payback period. While the company's preferred payback period is three years or less, you should also consider other factors like the overall profitability and the net present value (NPV) of the cash flows when deciding if this project will increase the value of the company. Since the cost of capital is 11%, this can be viewed as the discount rate for computing the NPV.
In this case, the NPV is calculated by discounting each of the annual cash flows and the final salvage value at an 11% discount rate and subtracting the initial investment. If the NPV is positive, it means the project is expected to generate value over and above the cost of capital.
In 2011 modern electronics produce 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produce 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronic.
a. decresed by 4%
b. remained constant
c. increased by 8.33%
d. increase by 27.50%
Answer:
The answer is A. Decreased by 4%.
Explanation:
Calculations are as shown below:
In the year of 2011:
Modern Electronics working hour's per day = Number of workers x working time per day = 80 x 8 = 640 hours
Number of calculators Modern Electronics made per one working hour ( that is, productivity) = 60,000 / 640 = 93.75 calculators.
In the year of 2012:
Modern Electronics working hour per day = Number of workers x working time per day = 85 x 10 = 850 hours
Number of calculators made per one working hour ( that is, productivity) = 76,500 / 850 = 90.00 calculators.
Comparision of productivity in the year 2012 over the year 2011 = 90/93.75 -1 = -4%
Thus, productivity decrease 4% in the year 2012 in comparison to the year 2011.
Which of the following best defines the term commodity? a. A physical object we find, grow, or make to meet our needs and those of others. b. An activity that benefits people, such as health care, education, and entertainment. c. An economic system which adheres to the principles of socialism. d. A benefit given to those who participate in the capitalist market.
Answer: A physical object we find, grow, or make to meet our needs and those of others.
Explanation: A commodity is an object that possesses a certain form of value, it can be used to meet an immediate need of a person.
It can be grown or produced to meet the specified needed requirements of the particular need it solves.
The term 'commodity' is used by economists to define any physical object we find, grow, or make that meets our needs or the needs of others.
Explanation:In answering the question, which of the following best defines the term commodity, let's start with the fact that economists use the term commodity to refer to a physical object that we find, grow, or make to meet our needs and those of others. This term can certainly include things like the food you eat or the home you live in, typically identified as private goods.The term 'commodity' is used by economists to define any physical object we find, grow, or make that meets our needs or the needs of others. For instance, a farmer who grows corn owns that corn, and since only a finite amount of corn exists, others may want to trade their goods for it if their own food supplies begin to dwindle which contributes to the commodity market.
Further, we see commodities prominently in industrial societies where people buy, consume, and own an extraordinary amount of stuff. Companies produce and market a wide range of commodities, often attaching special meanings to them.
So, considering the options provided, the best answer would be: A commodity is 'A physical object we find, grow, or make to meet our needs and those of others'.
Learn more about commodity here:https://brainly.com/question/35436952
#SPJ11