A production company needs to finance a piece of equipment (fixed asset) with a useful life of 5 years. As a result, businesses must use loan credit structures to help them finance the purchase of equipment.
LoansThe most appropriate credit structure for a production company to finance a piece of equipment with a useful life of 5 years is a medium-term loan. Medium-term loans, also known as installment loans, are financial loans that are repayable in 2 to 10 years, with monthly, semi-annual, or annual payments.
Since the equipment has a useful life of 5 years, a medium-term loan with an equal repayment period would be ideal for a production company to finance a piece of equipment with a useful life of 5 years. Medium-term loans are advantageous in that they can be used to finance capital investments, such as equipment purchases.
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A Firm's success depends on a manager's ability to _____
a. assign tasks to avoid based on a worker's weakness b. assign tasks based on a worker's strengths c. assign tasks that workers prefer
A firm's success depends on a manager's ability to assign tasks based on a worker's strengths.
What is the meaning of "manager"? A manager is a person who is responsible for the management of an organization or department. It is critical that the manager understand his or her role in a company's success. A manager's skill set includes developing the company's strategy, planning, and coordinating resources to achieve organizational objectives.
A manager must possess the following characteristics:
The ability to lead and guide othersthe ability to make sound decisions and handle difficult situations. A good listenerThe ability to motivate employees to achieve their full potentialA keen sense of judgmentA manager should be able to assign tasks to their subordinates according to their strengths, which will aid in the completion of the work in the most efficient manner possible. A worker's productivity is determined by their ability to use their skills and knowledge to perform their job duties. If a worker is assigned a task that they are not comfortable with, they will struggle to complete it. This will lead to frustration, low motivation, and poor performance.
As a result, a firm's success is dependent on a manager's ability to assign tasks that are based on a worker's strengths rather than weaknesses.
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One of the problems with ROMI is that it often focuses on __________ rather than looking at the effects or changes in brand equity. A. Long-term decision perspective B. Short-term decision perspective C. Relationship marketing D. Incremental authorization E. None of these
B. Short-term decision perspective is the correct answer. Return on marketing investment (ROMI) is a metric that measures the financial return on investment from marketing activities, typically in the short term.
ROMI is often criticized for focusing too heavily on short-term financial returns, such as immediate sales, and not taking into account the long-term effects of marketing activities, such as changes in brand equity or customer loyalty. Therefore, while ROMI is a useful metric for evaluating short-term marketing effectiveness, it is important to supplement it with other measures that capture the longer-term impact of marketing investments on brand equity, customer engagement, and overall business performance.
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in which one of the following market circumstances is a broad differentiation strategy generally not well suited?
In markets where consumers prioritise low pricing over distinctive characteristics or attributes, a broad differentiation strategy is typically not well-suited.
Are broad differentiation techniques appropriate given the current state of the market?When there are numerous ways to differentiate a product or service that are valuable to customers, broad differentiation techniques are ideally matched to the market environment.
What is a strategy for broad market differentiation?Companies frequently employ the broad differentiation strategy to win a large market share. It entails the business creating a product line that consists of a variety of unrelated but connected products. As a result, the business is able to provide customers a variety of items with unique characteristics and advantages.
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By the mid-twentieth century, in the case of ______ the courts had given boards of directors and management more latitude in determining how to balance the interests of stakeholders.
Shirensky v. Wrigley
By the mid-twentieth century, in the case of Shirensky v. Wrigley the courts had given boards of directors and management more latitude in determining how to balance the interests of stakeholders.
What was Shirensky v. Wrigley about?Shirensky v. Wrigley is a United States Court of Appeals decision that was made in 1947. The court held that directors of a corporation must be allowed to balance the interests of different groups of stakeholders, such as shareholders, employees, creditors, and customers, in order to make decisions that promote the company's long-term well-being.
This decision significantly expanded the discretion of boards of directors and management in determining how to balance the interests of stakeholders. The court's selection in Shirensky v. Wrigley was one of the most important legal precedents in corporate law history, and it had a significant impact on the development of corporate governance principles in the United States.
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a credit score is an indicator of how well someone pays off their debt, not how well they handle money. T/F
True, A person's credit score is a reflection of how effectively they handle their debt, not how well they manage their finances.
A credit score is a numerical rating that ranges from 300 to 850 and assesses a person's tendency to repay debt. A borrower with a better credit score is viewed as being more trustworthy and less dangerous. A credit score, which ranges from 300 to 850, represents a person's creditworthiness. The three principal credit reporting agencies are Equifax, Experian, and TransUnion. A credit score is a crucial element in a lender's decision to extend credit. The FICO rating system is used by many financial organizations. A person's credit score is based on their total amount owed, length of credit history, types of loans, and history of loan repayment.
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assume that malnava company will pay a $2.00 dividend per share next year, an increase from the current dividend of $1.50 per share that was just paid. after that, the dividend is expected to increase at a constant rate of 5%. if you require a 12% return on the stock, the value of the stock is
The dividend is expected to increase at a constant rate of 5%. if you require a 12% return on the stock. The value of the stock is $28.57 per share.
We can use the Gordon Growth Model to calculate the value of the stock, which is based on the present value of all future dividends.
First, we need to calculate the dividend expected to be paid in the future after the next year. Using the constant growth rate of 5%
Expected dividend in year 2 = Dividend in year 1 * (1 + growth rate)
Expected dividend in year 2 = $2.00 * (1 + 0.05) = $2.10
Value of stock = D1 / (r - g)
D1 = Expected dividend in the next year = $2.00
r = Required rate of return = 12%
g = Growth rate of dividends = 5%
Plugging in the values
Value of stock = $2.00 / (0.12 - 0.05)
Value of stock = $2.00 / 0.07
Value of stock = $28.57
Therefore, the value of the stock is $28.57 per share.
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As part of the 'Value Discovery' process/customer interactions, what must be the approach with respect to TCS IPs and
assets?
Select the correct option(s) and click submit.
Discuss the potential of creating new IPs with the customer
Position existing TCS assets and IPs with the customers
IPs are an outcome of solutioning and, therefore, need to be discussed during the 'Value Proposition' cycle
IPs are an outcome of final delivery and, therefore, need to be discussed during the 'Value Delivery' cycle
Submit
option B is correct -Position the customers with regard to the current TCS assets and IPs.
The customer must receive true value from it. That must be the best remedy for your customer's problems. Salespeople who use this method must go above and beyond their own interests and demonstrate genuine concern for the customer. Moreover, empathy is needed.
The strategy with regard to TCS IPs and assets should be to position them with the customers during the "Value Discovery" process and customer interactions. This entails demonstrating the pertinent knowledge and resources that TCS has created in the past and is able to contribute to the table for the demands of the client. The emphasis is on showcasing TCS's strengths and knowledge in providing value to the client.
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Which of the following is most likely to help managers in screening hundreds or even thousands of new product concepts in a year?A. Reinventing the wheel when a concept similar to one that has been rejected comes up again laterB. Bypassing the full screen to begin technical developmentC. Maintaining a record of rejected conceptsD. Cancelling concepts that are unacceptable, but possibly worthwhile
"Maintaining a record of rejected concepts" is most likely to help managers in screening hundreds or even thousands of new product concepts in a year. Option C is the correct answer.
Keeping a database of previous product concepts that were rejected along with the reasons for their rejection can help managers to avoid investing resources in concepts that have already been deemed unsuitable for development. By analyzing the records of past concepts, managers can identify patterns and develop a more efficient screening process. This approach allows managers to quickly screen new concepts against previous rejected concepts and focus on those with the most potential for success.
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trade routes through southwest asia increased interactions between civilizations in which continents?
Trade routes through Southwest Asia increased interactions between civilizations in the continents of Asia, Africa, and Europe. These routes were essential for the development of commerce and trade between these areas, and even contributed to the spread of different cultures, religions, and technologies.
The major trade routes through Southwest Asia were the Silk Road and the Incense Route. The Silk Road was established in the 2nd century BC, and stretched from East Asia to the Mediterranean Sea, going through Southwest Asia. The Incense Route was a collection of routes running through the Arabian Peninsula, and was used to transport luxury goods, including spices and perfumes, to the Mediterranean region.
The Silk Road and Incense Route provided a vital link between the civilizations in Asia, Africa, and Europe. These routes allowed goods to be transported, leading to an increase in trade between the different regions. Furthermore, ideas, religions, and technologies were exchanged and spread through the same routes. This exchange had a huge impact on the cultures of the time, and even today many of the cultures in the areas influenced by the routes still reflect their past.
In conclusion, trade routes through Southwest Asia increased interactions between civilizations in the continents of Asia, Africa, and Europe. These routes were essential for the spread of goods, cultures, religions, and technologies, and still have an impact on the world today.
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A 4% coupon bond with 6 months remaining until maturity is currently trading at $1005.17. Assume semi-annual coupon payments. The bond's YTM is__________%
For a 4% coupon bond with 6 months remaining until maturity is currently trading at $1005.17, the bond's YTM is 4.08%.
Yield to maturity (YTM) is the yield an investor receives if they keep a coupon bond to maturity and are repaid all interest and principal. It is the rate of return that an investor expects to obtain from a bond investment till the time of maturity.
To calculate the YTM of a 4% coupon bond with 6 months remaining until maturity trading at $1005.17, you need to consider the following factors:
- The par value of the bond
- The current price of the bond
- The coupon rate
- The time to maturity
The formula to calculate the YTM of the bond is:
YTM = (Par Value + (Current Price - Par Value)/Time to Maturity) / (Current Price + Par Value) / 2
In this case, the par value is $1000, the current price is $1005.17, the coupon rate is 4%, and the time to maturity is 6 months. Plugging these values into the equation gives us:
YTM = ($1000 + ($1005.17 - $1000)/6) / ($1005.17 + $1000) / 2 = 4.08%
Hence, for the given coupon bond, the yield to maturity is 4.08%.
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in what two ways have promotion efforts changed to improve transactions and increase customer intimacy?
Two ways in which promotion efforts have changed to improve transactions and increase customer intimacy include:
Emphasis on personalizationIntegration of technologyHow have promotion efforts changed customer intimacy?Modern promotion efforts are increasingly focused on personalization, tailoring marketing messages and promotions to individual customers based on their preferences, behavior, and purchase history.
The use of technology has also revolutionized promotion efforts, allowing companies to reach customers through a variety of channels, including social media, email marketing, and mobile apps.
By leveraging technology, companies can create more engaging and interactive marketing experiences, such as personalized video messages or augmented reality promotions.
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what is the main purpose of risk identification in an organization? to create a business continuity plan (bcp) to create a disaster recovery plan (drp) to understand threats to critical resources
The main purpose of risk identification in an organization is to understand threats to critical resources.
Risk identification refers to the process of identifying and evaluating potential risks to an organization's assets, processes, and operations. It is the first phase of the risk management process, and it is crucial to the success of risk management.
A risk identification program should include the following components: A framework for identifying and assessing risks. The methodology that is used to identify and assess risks. A systematic approach to identifying risks based on organizational goals and objectives. A procedure for reporting, tracking, and responding to identified risks.
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Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below. Alternative X Alternative Y Materials costs $ 41,000 $ 59,000 Processing costs $ 45,000 $ 45,000 Equipment rental $ 17,000 $ 17,000 Occupancy costs $ 16,000 $ 24,000 What is the financial advantage (disadvantage) of Alternative Y over Alternative X?
Multiple Choice
$132,000
$26,000
$145,000
$119,000
There is no one correct answer to the question asked, so it is necessary to provide all of the necessary information. Given the two choices, code-named X and Y, the costs are as follows:
Alternative X Alternative Y
Materials cost $ 41,000 $ 59,000
Processing costs $ 45,000 $ 45,000
Equipment rental $ 17,000 $ 17,000
Occupancy costs $ 16,000 and $ 24,000
The financial advantage (or disadvantage) of Alternative Y over Alternative X may be calculated by subtracting the costs of Alternative X from the costs of Alternative Y.
This provides total cost savings (or cost increase) associated with Alternative Y over Alternative X.
Y costs $145,000, whereas X costs $102,000 ($41,000 + $45,000 + $17,000 + $16,000).
As a result, subtracting X from Y yields: $145,000 - $102,000 = $43,000.
Therefore, the financial advantage of Alternative Y over Alternative X is $43,000. Answer: $43,000.
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the long run elasticity of the demand for oil is estimated to be -0.5. which of the following statements is/are correct. choose all that apply. group of answer choices A. if oil prices rise by 4%, the quantity of oil demanded will fall by 8%. B. oil is an inferior good. C. if oil prices fall by 10%, quantity of oil demanded will rise by 5%. D. if oil prices rise, oil companies will enjoy higher revenues. E. if oil prices rise, oil companies will lose revenues. F. if oil prices fall, oil companies will enjoy higher revenues. G. if oil prices fall, oil companies will lose revenues. H. the demand for oil is inelastic.
The statement that is/are correct regarding the long run elasticity of the demand are: A. If oil prices rise by 4%, the quantity of oil demanded will fall by 8%, C. If oil prices fall by 10%, the quantity of oil demanded will rise by 5%,
Elasticity is the degree to which supply, or demand varies in response to price changes. Elasticity is used to determine how much buyers and sellers change their behavior in response to a price change in economics. When demand or supply is sensitive to price changes, we say it is elastic.
The quantity of goods or services that buyers are willing and able to acquire at a given price is referred to as demand. Demand is determined by a variety of factors, including consumer preferences, prices, and consumer income. When the price of a good or service changes, the amount demanded changes as well.
Therefore, the correct option is A and C.
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sundance systems has the following transactions during july. july 5purchases 42 lcd televisions on account from red river supplies for $2,600 each, terms 2/10, n/30. july 8returns to red river four televisions that had defective sound. july 13pays the full amount due to red river. july 28sells remaining 38 televisions from july 5 for $3,100 each on account.
As per the given transactions for Sundance Systems during July, the step-by-step explanations are mentioned below:On July 5th, Sundance Systems purchased 42 LCD televisions on account from Red River Supplies for $2,600 each, terms 2/10, n/30.
Sundance Systems Account is debited with $109,200 [$2,600 x 42] and Red River Supplies Account is credited with the same amount. Sundance Systems will also record the accounts payable for $109,200 until the payment is made.
On July 8th, Sundance Systems returned four televisions to Red River Supplies that had defective sound.Red River Supplies Account is debited with $10,400 [$2,600 x 4] and Sundance Systems Account is credited with the same amount.
On July 13th, Sundance Systems pays the full amount due to Red River Supplies.Sundance Systems will record a reduction in accounts payable of $98,800 [$109,200 - $10,400] and Cash Account will be debited with $98,800.
On July 28th, Sundance Systems sells the remaining 38 televisions from July 5th for $3,100 each on account.Sundance Systems Account is credited with $117,800 [$3,100 x 38] and Accounts Receivable Account is debited with the same amount until the payment is received.Note: Sundance Systems will record a purchase discount if the payment is made within the discount period, which is 2/10, n/30. In this scenario, no purchase discount is mentioned.
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A machine with a cost of $134,000 and accumulated depreciation of $89,000 is sold for $52,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:
Multiple Choice
$7,000.
$45,000.
$52,000.
Zero. This is a financing activity.
Zero. This is an operating activity.
In preparing a company's statement of cash flows for the most recent year, the following information is available:
Loss on the sale of equipment $ 15,500
Purchase of equipment 160,000
Proceeds from the sale of equipment 141,000
Repayment of outstanding bonds 94,500
Purchase of treasury stock 69,500
Issuance of common stock 103,500
Purchase of land 130,000
Increase in accounts receivable during the year 50,500
Decrease in accounts payable during the year 82,500
Payment of cash dividends 42,500
Net cash flows from investing activities for the year were:
Multiple Choice
$282,000 of net cash used.
$149,000 of net cash provided.
$149,000 of net cash used.
$243,500 of net cash provided.
$133,500 of net cash used.
A company had net cash flows from operations of $131,000, cash flows from financing of $352,000, total cash flows of $533,000, and average total assets of $3,160,000. The cash flow on total assets ratio equals:
Multiple Choice
4.1%.
4.3%.
16.9%.
17.0%.
24.6%.
The fist question correct option is $45000. The second question given is Proceeds from the sale of equipment 141,000. The third question is 17%.
The first question asks about the amount that should be reported as a source of cash under cash flows from investing activities. In this case, the amount that should be reported is $45,000, which is the difference between the cost and accumulated depreciation. The cost of the machine was $134,000, the accumulated depreciation was $89,000, and it was sold for $52,000, resulting in a difference of $45,000.
The second question asks about the net cash flows from investing activities for the year, given a variety of cash inflows and outflows. In this case, the net cash flows from investing activities for the year were $149,000 of net cash provided. This figure was calculated by subtracting the loss on the sale of equipment ($15,500), the purchase of equipment ($160,000), the repayment of outstanding bonds ($94,500), the purchase of treasury stock ($69,500), and the purchase of land ($130,000) from the proceeds from the sale of equipment ($141,000).
Finally, the third question asks about the cash flow on total assets ratio. This figure can be calculated by dividing the total cash flows for the year ($533,000) by the average total assets for the year ($3,160,000). This results in a cash flow on total assets ratio of 17.0%.
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An investment offers $7,700 per year for 14 years, with the first payment occurring one year from now. Assume the required return is 8 percent.What is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Present value $
For an investment offering $7,700 per year for 14 years, and required return rate of 8%, the value of investment today is $64,454.93.
The value of the investment today is calculated by discounting the future cash flows at the required return. The present value is the sum of all discounted future cash flows. The present value of the investment can be calculated as follows:
Present Value = 7,700 / (1.08) + 7,700 / [tex](1.08)^{2}[/tex] + ... + 7,700 / [tex](1.08)^{14}[/tex]
Present Value = 7,700 / (1.08) + 7,700 / [tex](1.08)^{2}[/tex] + ... + 7,700 / [tex](1.08)^{2}[/tex]
Present Value = $64,454.93
Therefore, the value of investment today is $64,454.93 at return rate of 8%.
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in january of year 1, idea company purchased a patent for a new consumer product for $340,000. at the time of purchase, the remaining legal life of the patent was 17 years. however, because of the competitive nature of the market, the patent was estimated to have a useful life of 10 years. during year 5, it was determined that there was a potential health hazard present in the product. as a result, the estimated future cash flows from the patent on december 31 of year 5 are estimated to be $160,000 while the fair value of the patent is estimated to be $138,600. total estimated useful life remains unchanged.Required a. Determine annual amortization expense for Year 1 through Year 5 . b. Determine the carrying value of the patent on December 31 of Year 5 , before assessing for impairment. c. What amount should idea record as an impairment loss if anyb in Year 5? d. What is the adjusted carrying value of the patent on December 31 of Year $ ? e Assume that the potential health hazard was resolved in vear 6: .As a result, the future cash flows from the patent on December 31 of Year 6 are estimated to be5130.090 whie the far value of the patent is estimated to be 5108,000 . What amount ahould idea record as a loss for recovery on impairment (d any) in Vear 6 ? f. What is the adjusted carrying value of the patent on December 31 of Year 6 ?
Determine annual amortization expense for Year 1 through Year 5:
Therefore, the annual amortization expense for Years 1-5 is $34,000.
The annual amortization expense for Year 1 through Year 5 can be determined by dividing the purchase price of the patent (340,000) by the estimated useful life of the patent (10 years). Determine the carrying value of the patent on December 31 of Year 5, before assessing for impairment:
The carrying value of the patent on December 31 of Year 5, before assessing for impairment, is the purchase price minus the accumulated amortization. Therefore, the carrying value of the patent on December 31 of Year 5 is $306,000 ($340,000 - $34,000 x 5).
What amount should idea record as an impairment loss if anyb in Year 5?
Idea should record an impairment loss of $168,000 in Year 5 ($306,000 - $138,600).
What is the adjusted carrying value of the patent on December 31 of Year 5?
The adjusted carrying value of the patent on December 31 of Year 5 is $138,600, which is the estimated fair value of the patent.
Assume that the potential health hazard was resolved in Year 6: As a result, the future cash flows from the patent on December 31 of Year 6 are estimated to be $130,090 while the fair value of the patent is estimated to be $108,000. What amount should idea record as a loss for recovery on impairment (if any) in Year 6?
Idea should record a loss for recovery on impairment of $22,090 in Year 6 ($138,600 - $108,000 + $130,090).
What is the adjusted carrying value of the patent on December 31 of Year 6?
The adjusted carrying value of the patent on December 31 of Year 6 is $108,000, which is the estimated fair value of the patent.
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if a nation has a population of 100 million, a labor force of 60 million, and gdp of $200 billion, then gdp per capita must be:
a. $333.33.
b. $3,333.33
c. $200.00
d. $2,000.00
If a nation has a population of 100 million, a labor force of 60 million, and a GDP of $200 billion, then GDP per capita must be $ 2,000. Thus, the correct option is "D".
A country's or nations' gross domestic product (GDP) is a monetary indicator of the total market value of all the finished products and services produced during a certain time period.
The government of a single nation most frequently uses GDP to gauge the strength of its economy.
Here,
GDP per capita = GDP/population.
GDP = 200 billion, population =100 million =0.1 billion
So,
GDP per capita = 200 billion/0.1 billion =$2000
Therefore, the correct option is D.
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If the natural rate of unemployment exceeds the actual rate of unemployment, which of the following will occur in the long run in the absence of govemment intervention?
a There will be cyclical unemployment.
b Input prices will derease.
с Nominal wages will increase
d The aggregate demand curve will shift to the left.
e The short-run aggregate supply curve will shift to the right.
If the natural rate of unemployment exceeds the actual rate of unemployment, nominal wages will increase in the long run in the absence of government intervention.
Nominal wages are the amount of money paid to employees as remuneration for their labor, regardless of their actual purchasing power, and they often follow an upward trend.
The natural rate of unemployment is the percentage of people who are unemployed because of changes in the economy, such as recessions, business cycles, or economic growth.
The nominal wage rate, in particular, refers to the wage rate in current prices, and it is unlikely to be influenced by the state of the economy, such as inflation, growth, or recession.
The long-run trend of nominal wages is upward, which implies that as the economy grows, nominal wages will rise.
As a result, if the natural rate of unemployment exceeds the actual rate of unemployment, nominal wages will increase over time in the absence of government intervention.
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Q5. For United Africa Company the following projected reports the following operating results for the month of June 30, 2023 availed for analysis. Round all percentage answers to one decimal place.
United Africa Company
CVP projected income statement
For the Month Ended June 30, 2023
Total Per unit
Sales (5000 units ) $600,000 $120
Variable cost 360,000 72
Contribution margin 240,000 48
Total Fixed cost 200,000
Net income 40,000
Instructions:
To increase net income, project management team is considering reducing the selling price by 10%, with no changes to unit variable costs or fixed costs. Project Management team is confident that this change will increase unit sales by 25%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars.
A. Assuming no changes to sales price or costs,
B. Assuming changes to sales price and volume as described above.
C. Assuming change (B) approved, Calculate the number of units that the company must sell to earn operating income of $80,000.
D. Comment on your findings.
Answer:
A. Assuming no changes to sales price or costs:
Break-even point (in units) = Total Fixed Cost / Contribution Margin per unit
Break-even point (in units) = $200,000 / $48 = 4,167 units
Break-even point (in dollars) = Break-even point (in units) x Sales price per unit
Break-even point (in dollars) = 4,167 x $120 = $500,040
Margin of safety (in dollars) = Total Sales - Break-even point (in dollars)
Margin of safety (in dollars) = $600,000 - $500,040 = $99,960
B. Assuming changes to sales price and volume as described above:
New selling price per unit = $120 - (10% of $120) = $108
New sales volume = 5000 x 1.25 = 6250 units
New total sales = New sales volume x New selling price per unit = 6250 x $108 = $675,000
New contribution margin = New total sales - Variable costs = $675,000 - ($72 x 6250) = $270,000
New net income = New contribution margin - Total Fixed costs = $270,000 - $200,000 = $70,000
Break-even point (in units) = Total Fixed Cost / Contribution Margin per unit
Break-even point (in units) = $200,000 / $48 = 4,167 units
Margin of safety (in dollars) = Total Sales - Break-even point (in dollars)
Margin of safety (in dollars) = $675,000 - ($200,000 / 0.6) - $500,040 = $174,960
C. Assuming change (B) approved, Calculate the number of units that the company must sell to earn operating income of $80,000:
Required contribution margin = Total Fixed costs + Operating income
Required contribution margin = $200,000 + $80,000 = $280,000
Required sales revenue = Required contribution margin / Contribution margin ratio
Contribution margin ratio = Contribution margin per unit / Sales price per unit = $48 / $108 = 0.4444
Required sales revenue = $280,000 / 0.4444 = $630,063
Required sales volume = Required sales revenue / Selling price per unit = $630,063 / $108 = 5,834 units
D. Based on the analysis, reducing the selling price by 10% and increasing unit sales by 25% results in an increase in net income from $40,000 to $70,000. The break-even point in units remains the same at 4,167 units, but the break-even point in dollars increases from $500,040 to $525,042. The margin of safety increases from $99,960 to $174,960. To earn operating income of $80,000, the company needs to sell 5,834 units, which is less than the new projected sales volume of 6,250 units. Overall, the proposed changes seem to be beneficial for the company.
When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm, she is using
When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm, she is using Internal secondary data.
A study technique called secondary research, commonly referred to as desk research, is gathering pre-existing data obtained from various sources. This refers to both external sources (such as outside research) and inside sources such as internal research as government statistics, organizational bodies, and the internet.
Secondary research may be found online, in libraries, and museums, and it can be obtained in a variety of ways, including published statistics, reports, and survey results. The data was acquired via surveys, phone interviews, observation, face-to-face interviews, and other methods, and is often free or available with a fee for restricted access. Researchers gather secondary research, verify it, analyze it, and then incorporate it to support the confirmation of their research objectives for the study period.
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miriam romero owns a home in edmond, oklahoma. she is worried her property might be damaged due to some unforeseen event. this worry about the uncertainty as to a loss is an example of a:
Miriam Romero's worry about the uncertainty of a potential loss to her property is an example of risk.
What is Risk?Risk refers to the likelihood of a negative outcome occurring and the potential impact it may have. In this case, the potential negative outcome is property damage, and the impact could be financial, emotional, or both.
Risk management involves identifying potential risks, assessing their likelihood and impact, and taking steps to mitigate or minimize them. In Miriam's case, she may choose to purchase insurance or take measures to protect her property from potential hazards.
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The advantages of bond exchanges (bond markets) include which of the following? (Check all that apply.)
Allows corporations to reduce the cost of long-term borrowing
Provides liquidity to creditors
Allows creditors to sell bonds prior to maturity
The advantages of bond exchanges (bond markets) include the following:
Bond exchanges (or bond markets) allow corporations to reduce the cost of long-term borrowing by increasing the number of potential investors in the bond. This makes it easier to find buyers and sellers at a more competitive price. Bond markets also provide liquidity to creditors by allowing them to easily sell their bonds prior to maturity. This allows them to have more flexibility when dealing with their investments.
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suppose the growth rate of gdp in the united states is 2.9 percent. if 1.2 percent and 0.9 percent are due, respectively, to capital and labor growth, the amount resulting from technological progress is: answer unselected 2.1 percent unselected 1.0 percent unselected 0.8 percent
The growth rate of GDP in the United States is 2.9%. If 1.2% and 0.9% are due, respectively, to capital and labor growth, the amount resulting from technological progress is 0.8%.
GDP (Gross Domestic Product) is the market value of all goods and services produced within a nation's borders in a given year. It is the most commonly used economic indicator, used by policymakers and analysts to assess the state of the economy and its economic growth. It is calculated by summing the consumption expenditure, investment expenditure, government expenditure, and net exports (exports minus imports). Technological progress refers to the development of new technologies or the improvement of existing technologies that result in increased productivity or efficiency. Technological progress can be achieved through investments in research and development or through the adoption of new technologies in production processes. Suppose the growth rate of GDP in the United States is 2.9%. If 1.2% and 0.9% are due, respectively, to capital and labor growth, the amount resulting from technological progress is 0.8%. This is because: 2.9% = 1.2% + 0.9% + Technological progress
Technological progress = 2.9% - 1.2% - 0.9% Technological progress = 0.8% Hence, the amount resulting from technological progress is 0.8%.
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uppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, rf. The characteristics of two of the stocks are as follows: Stock A B Correlation = -1 Expected Return 8% 13% Standard deviation 40% 60% a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be substituted for the risk-free asset?) Rate of return % b. Could the equilibrium rf be greater than 10%? Yes O No
a. The expected rate of return on this risk-free portfolio is 10%. This is because when the correlation between two stocks is -1, a portfolio can be constructed with 0 risks by taking equal amounts of both stocks and borrowing at the risk-free rate.
b. Yes, the equilibrium rf could be greater than 10%. This would occur if the expected return of the two stocks exceeds 10%, or if the risk-free rate is increased.
a. The correlation between Stock A and Stock B is -1; so they will move in the opposite direction.
The expected return and standard deviation of both stocks are also provided.
$$E(R_p)=w_AE(R_A)+w_BE(R_B)$$
wA and wB are the weights of Stock A and Stock B, respectively, and E(RA) and E(RB) are the expected returns of Stock A and Stock B, respectively.
The weights of Stock A and Stock B will add up to 1:$$w_A+w_B=1$$
$$E(R_p)=w_AE(R_A)+w_BE(R_B)=w_A(0.08)+w_B(0.13)=0.08+0.05w_B$$
Since Stock A and Stock B are negatively correlated, the portfolio standard deviation, σp:
$$\sigma_p = \sqrt{(w_A\sigma_A)^2+(w_B\sigma_B)^2+2w_Aw_B\sigma_A\sigma_B\rho_{AB}}$$$$\sigma_p = \sqrt{(w_A\sigma_A)^2+(w_B\sigma_B)^2-2w_Aw_B\sigma_A\sigma_B}$$$$\sigma_p = \sqrt{(w_A(0.4))^2+(w_B(0.6))^2-2w_Aw_B(0.4)(0.6)(-1)}$$
Thus, the expected rate of return on this risk-free portfolio is 0.08 + 0.05wB.Rate of return = 0.08 + 0.05wB.
b. Answer to whether the equilibrium rf can be greater than 10%:The equilibrium risk-free rate is the rate at which the expected return on the market portfolio is equal to the risk-free rate.
It is possible for the equilibrium risk-free rate to be greater than 10%.
Therefore, the answer is "Yes."
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A great alternative to a four-year college—and one that could save you a bunch of money—would be to go _____.
A community college would be a fantastic substitute for a four-year institution of higher learning and one that may help you save a ton of money.
Is a portion of the loan fee imposed to defray the expense of providing the loan?You pay a fee for borrowing money that is calculated as a percentage of the loan amount. You are obligated to pay this recurring fee in addition to the principal. Always noted in the promissory note is the interest rate.
What are higher education's hidden costs?When creating a college budget, students must take other expenses into consideration. Textbooks, transportation, and club dues are a few examples of hidden costs. Students' spending is also influenced by their involvement in Greek life and where they live off campus.
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You have recently subscribed to an online data analytics magazine. You really enjoyed an article and want to share it in the discussion forum. Which of the following would be appropriate in a post? Select all that apply.
Giving credit to the original author
Including your own thoughts about the article
Checking your post for typos or grammatical errors
The appropriate things to do when sharing an online data analytics magazine article in a discussion forum are checking your post for typos or grammatical errors, giving credit to the original author, and including your own thoughts about the article. Therefore, the correct options are B, C, and D.
The following would be appropriate in a post when sharing an online data analytics magazine article in a discussion forum:
Checking your post for typos or grammatical errors: This ensures that your post is easy to read and understand, and it shows that you take the time to present your ideas clearly.Giving credit to the original author: This is important to acknowledge the source of the information and avoid plagiarism.Including your own thoughts about the article: This shows that you have read and understood the article, and it provides an opportunity to share your own insights and opinions.It is important to be respectful and considerate of other forum members' opinions, even if you disagree with them. It is inappropriate to include an advertisement for how to subscribe to the data analytics magazine. This could be seen as spam and could detract from the quality of the discussion. Hence, the correct answers are option, B, C, and D.
Note: The question is incomplete. The complete question probably is: You have recently subscribed to an online data analytics magazine. You really enjoyed an article and want to share it in the discussion forum. Which of the following would be appropriate in a post? Select all that apply. A) Including an advertisement for how to subscribe to the data analytics magazine. B) Checking your post for typos or grammatical errors. C) Giving credit to the original author. D) Including your own thoughts about the article
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Lewis must communicate important policy changes to his sales reps on the road. He would also like their active participation and immediate feedback. The proper medium for this message would be which of the following?
a. A virtual meeting
b. Posting an announcement on the office bulletin board
c. Forwarding a letter or e-mail
d. One that targets the secondary audience
Current Liabilities and Ratios Several accounts that appeared on Kruse's 2017 balance sheet are as follows: Accounts Payable $55,000 Equipment $950,000 Marketable Securities 40,000 Taxes Payable 15,000 Accounts Receivable 180,000 Retained Earnings 250,000 Notes Payable, 12%, due in 60 days 20,000 Inventory 85,000 Capital Stock 1,150,000 Allowance for Doubtful Accounts 20,000 Salaries Payable 10,000 Land 600,000 Cash 15,000 Required: 1. Prepare the Current Liabilities section of Kruse's 2017 balance sheet. Kruse Partial Balance Sheet As Of December 31, 2017 Current liabilities: Accounts payable $ 55,000 Notes payable, 12%, due in 60 days 20,000 Taxes payable 15,000 Salaries payable 10,000 Total current liabilities $ 100,000 Feedback Prepare the liabilities section of the balance sheet. 2. Compute Kruse's working capital. __ 3. Compute Kruse's current ratio. __: 1
In the following question, among the conditions given in the missing blanks about Current Liabilities, Kruse's working capital would be "$220,000". Kruse's current ratio would be "3.3:1."
The Current Liabilities section of Kruse's 2017 balance sheet would include the following accounts:
Accounts Payable: $55,000
Notes Payable, 12%, due in 60 days: $20,000
Taxes Payable: $15,000
Salaries Payable: $10,000
Total Current Liabilities: $100,000
Kruse's working capital is calculated by subtracting current liabilities from current assets. Current assets are Accounts Receivable ($180,000), Marketable Securities ($40,000), Inventory ($85,000), and Cash ($15,000). Therefore, Kruse's working capital would be $220,000.
Kruse's current ratio is calculated by dividing current assets by current liabilities. Current assets are $330,000 (Accounts Receivable $180,000 + Marketable Securities $40,000 + Inventory $85,000 + Cash $15,000), and current liabilities are $100,000. Therefore, Kruse's current ratio would be 3.3:1.
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