Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 280 employees and occupies 55,200 square feet; Painting has 120 employees and occupies 36,800 square feet. Indirect factory expenses for the current period are as follows: Administration $ 86,000 Maintenance $ 102,000 Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Painting Department for the current period is:

Answers

Answer 1

Answer:

$61,200

Explanation:

Maintenance expenses allocated to assembly department

Allocation base = Square footage

= $102,000 * $55,200 / ($55,200 + $36,800)

= $102,000 * $55,200 / $92,000

= $61,200


Related Questions

The Atlantic Division of Stark Productions Company reported the following results for 2019:
Sales $4,000,000
Variable costs 3,200,000
Controllable fixed costs 300,000
Average operating assets 2,500,000
Management is considering the following independent alternative courses of action in 2020 in order to maximize the return on investment for the division.
1. Reduce controllable fixed costs by 10% with no change in sales or variable costs.
2. Reduce average operating assets by 10% with no change in controllable margin.
3. Increase sales $500,000 with no change in the contribution margin percentage.
Compute the return on investment for 2019.

Answers

Answer:

The Atlantic Division of Stark Productions Company

Return on Investment = Net Income/Average operating assets x 100

1. Reduced controllable fixed costs by 10% with no change in sales or variable costs:

Net Income = $530,000 ($500,000 + 30,000)

Return on investment = $530,000/$2,500,000 x 100

= 21.2%

2. Reduced average operating assets by 10% with no change in controllable margin:

Net Income = $500,000 and average operating assets = $2,250,000

Return on Investment = $500,000/$2,250,000 x 100

= 22.22%

3. Increased sales to $4,500,000 with no change in the contribution margin percentage:

Sales                                  $4,500,000

Variable costs                     3,600,000

Contribution                        $900,000

Controllable fixed costs        300,000

Net operating income        $600,000

Average operating assets 2,500,000

Return on Investment = $600,000/$2,500,000 x 100

= 24%

Explanation:

a) Data and Calculations:

Sales                                  $4,000,000

Variable costs                     3,200,000

Contribution                        $800,000

Controllable fixed costs        300,000

Net operating income        $500,000

Average operating assets 2,500,000

Return on investment = Net Income/Average operating assets x 100 = $500,000/$2,500,000 x 100 = 20%

Contribution margin ratio = $800,000/$4,000,000 x 100 = 20%

The Atlantic Division's Return on Investment, as a performance measure, evaluates the efficiency of the investment in Atlantic Division.  This ratio is obtained by dividing the returns or benefits of the investment by the cost of the investment, and then multiplying by 100.

Michelle gives out a business card with an e-mail address on it. According to the comments that accompany the UETA, it may be reasonable to infer that Michelle has consented to

Answers

Answer:

Explanation:

transact business electronically.

Charlie is a strategist who wants to decide on the appropriate strategy to help his firm "go global." Which of the following should Charlie consider while choosing his strategy?A) He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.B) He should rely on his firm's business-level strategy as a clue to possible strategies pursued globally.C) He should remember that he has only one framework at his disposal to make global strategy decisions.D) He must remember that higher levels of control and a lower likelihood of any loss in reputation go along with less investment-intensive foreign entry modes.

Answers

Answer: A) He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.

Explanation:

Charlie must consider that despite the fact that the internet and technology have made globalization more accessible, the location of a business remains very important hence the old saying "its all about location location location".

The firm's geographical location has an effect on stakeholders in the company such as customers, employees and suppliers. For the customers, even if the business was to rely on the internet and delivering goods, the location needs to be convenient enough to ship goods from.

The Suppliers as well need to be able to send the goods ordered for in a timely fashion and an improper location can hamper that. Even employees need a place to work in that is conducive for them in terms of logistics and a safe working environment. Charlie should definitely not forget about the importance of location.

Andy Pearson ran PepsiCo Inc. for nearly 15 years, driving revenues from $1 billion to $8 billion. In 1980, Fortune named him one of the 10 toughest bosses in the United States. Pearson was singled out for the relentless demands that he put on his people. As one employee put it, Pearson's talents were often "brutally abrasive." Every year, without hesitation, he fired the least productive 10% to 20% of his workforce. Pearson used a(n) _____ leadership style.

Answers

Answer:

authoritarian leadership style

Explanation:

In simple words, An authoritarian form of leadership relates to the leadership style  where a leader determines strategies and practices, defines what objectives are to be accomplished, and manages and monitors all operations without substantive involvement by subordinates. An authoritative style of management can be highly successful in some cases, but also has negative consequences on community participants or staff.

What describes minerals that are deemed real property, such as gold and silver, until they are removed from the earth and become personal property?
A. Mineral rights.
B. Nutrients.
C. Synthetics.
D. Solid minerale.

Answers

Answer:

The correct answer is D

Explanation:

Solid minerals contained in the land

(Coal, iron, ore, gold or silver)

Hope this helps! (づ ̄3 ̄)づ╭❤~

Minerals known as real property such as gold and silver are known as Solid minerale before they later become personal property.

What is a Solid minerale?

These are mineral that is natural occurring in a solid and inorganic state and are representable by a chemical formula.

An example of Solid minerale includes Talc, Gold, Clay, Lithium, Kyanite, Wolframite, Gemstones etc

Therefore, the Option D is correct.

Read more about Solid minerale

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Part-time workers likely result in A. inaccurately high estimates of the labor force. B. inaccurately low estimates of the labor force. C. a disincentive for the unemployed to seek employment. D. lower incomes and fewer jobs.

Answers

Answer:

Correct answer:

A. inaccurately high estimates of the labor force.

Explanation:

Part-time work is the type of work where an individual has a flexible work plan is a given company unlike the traditional full-time work. Doing such work create the impression that, there is high labour force among the various industries and sectors. For example, someone might be working in two different firms under part-time basis same day which create an impression of two different individuals.

"Rihanna Company is considering purchasing new equipment for $379,200. It is expected that the equipment will produce net annual cash flows of $48,000 over its 10-year useful life. Annual depreciation will be $37,920. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)"

Answers

Answer:

Cash payback period is 7.9 years

Explanation:

Payback period = Initial investment / Cash inflow per period

=$379,200 / $48,000

=7.9 years

Thus, the cash payback period is 7.9 years.

Note: It is assumed that the net annual cash flows are after considering the annual depreciation.

Tatham Corporation produces a single product. The standard costs for one unit of its Clan product are as​ follows:
Direct materials (8 pounds at $0.70 per pound) $5.60
Direct labor (2 hours at $8 per hour) 16.00
Variable manufacturing overhead
(2 hours at $7 per hour) 1,400
Total 3,560
During November Year​ 2, 3,500 units of Clan were produced. The costs associated with November operations were as​ follows:
Material purchased (35,000 pounds at $0.80 per pound) 28,000
Material used in production (31,500 pounds)
Direct labor (7,500 hours at $7.50 per hour) 56,250
Variable manufacturing overhead incurred 55,500
What is the variable overhead efficiency variance for Clan for November Year​ 2?
1. $3,500 favorable.
2. $3,500 unfavorable.
3. $4,000 favorable.
4. $4,000 unfavorable.

Answers

Answer:

$3,500 Unfavorable

Explanation:

The computation of variable overhead efficiency variance for Clan for November Year 2 is shown below:-

Variable overhead efficiency variance

=  (Standard labor hours - actual labor hours) × (Standard variable overhead rate)

= (3,500 × 2 - 7,500) × $7

= (7,000 - 7,500) × $7

= $3,500 Unfavorable

Therefore for computing the Variable overhead efficiency variance we simply applied the above formula.

Slack Inc. borrowed $400,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31? a. $0. b. $48,000. c. $32,000. d. $36,000

Answers

Answer:

D.$36,000

Explanation:

Calculation for How much interest is recognized for the period from April 1 to December 31

First step is to find the 12% of the amount that was borrowed which is $400,000

$400,000×12%

=$48,000

Now let calculate for the amount of interest that is recognized from April 1 to December 31

Interest =$48,000×3/12

Interest =$12,000

Hence,

Interest =$48,000-$12,000

Interest=$36,000

Therefore the amount of interest that is recognized from April 1 to December 31 will be $36,000

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $45,500 $30,500 Direct operating expenses 27,600 23,000 Sales 92,300 67,600 Interest expense $2,100 General overhead 18,900 Income tax 4,000 The income from operations for the Locomotive Division is a.$44,600 b.$67,600 c.$14,100 d.$37,100

Answers

Answer:

$14,100

Explanation:

To find the answer, we use the following formula:

Income from operations = Sales - Cost of Goods Sold - Direct Operating Expenses - General Overhead

Income from operations = $67,600 - 30,500 - 23,000

                                        = $14,100

"A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to:"

Answers

Answer: sell covered calls

Explanation:

A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to sell covered calls.

It should be noted that a covered call is a financial transaction that takes place when a call option is sold by an investor even though the investor still owns part of the security based on what's sold.

The market for hot dogs on the streets of New York City can be considered close to a perfectly competitive market. Because there are so many individuals buying and selling hot dogs:

Answers

Question:

The market for hot dogs on the streets of New York City can be considered close to a perfectly competitive market. Because there are so many individuals buying and selling hot dogs:

A) there is a shortage of hot dogs

B) there is a surplus of hot dogs

C) market forces set the price in the market

D) firms are able to make large economic profits

E) firms cannot make positive accounting profits

Answer:

The correct answer is C.

Explanation:

Perfect competition is a market/ industry situation where there are numerous companies producing similar or perfect substitute products. Also, in the same market, none of the players is large enough to single-handedly influence the market especially with respect to price.

Cheers!

A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.

Answers

Answer: fall; rise

Explanation:

The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.

The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.

​What is the relationship between total surplus and economic efficiency?

Answers

Answer: When total surplus gets maximized, then economy meet economic efficiency.

Explanation:

Economic efficiency is described as a thinking that there is one possible way to make situation better by imposing a cost on another.

Total surplus is described as the sum of producer and consumer surplus.

It gets maximized in a perfect competition (hit free-market equilibrium).

i.e. It gets maximized when both consumer and producer surplus is maximum, and then the economy meet economic efficiency.

Margin on price as a percentage is the expression of how much you mark your product up by to arrive at your retail price. True False

Answers

Answer:

False

Explanation:

The margin on price refers to a percentage by taking a difference between the gross profit and the selling price

Here gross profit comes by

= Selling price - cost price

Now in the cost price we added some markup percentage i.e most probably equivalent to the retail price

Hence, the given statement is false

Lacy Technology transferred items with $12,600 of cost out of the Assembly Department because the items were finished and ready to be sold. What journal entries correctly reflects this transaction?

Answers

Answer:

Dr Finished Goods Inventory 12,600

Cr Work in Process - Assembly 12,600

Explanation:

Based on the information given we were told that the company transferred items that cost the amount of $12,600 from the Assembly Department because the items were finished and ready to be sold which means that the journal entries will be recorded as:

Dr Finished Goods Inventory 12,600

Cr Work in Process - Assembly 12,600

The net income reported on the income statement for the current year was $121,900. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $48,030 $44,190 Accounts receivable (net) 34,440 32,660 Merchandise inventory 47,020 49,710 Prepaid expenses 5,280 4,200 Accounts payable (merchandise creditors) 45,000 41,800 Wages payable 24,590 27,310 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .

Answers

Answer:

See answers below.

Explanation:

In order to get net cash flow through indirect method, we will have to make adjustment to the net income; hence we get the increase or decrease of different accounts with the data balance.

a) End beginning cash $48,030 $44,190

Increase in cash $3,840

Accounts receivable(net) $34,440 $32,660

Increase in accounts receivable $1,780

Merchandise Inventory $47,020 $49,710

Decreased inventory -$2,690

Prepaid expenses $5,280 $4,200

Increase prepaid expenses $1,080

Accounts payable(Merchandise creditors) $45,000 $41,800

Accounts payable increase $3,200

Wages payable $24,590 $27,310

Decreased wages payable -$2,720

Per below, we have some accounts that are added (+) to the net income while some are also deducted (-).

Net income $121,900

Adjustment to reconcile the net income to cash

+ Depreciation $20,100

+ Increase in cash $3,840

- Increase in accounts receivable ($1,780)

+ Inventory decrease $2,690

- Increase prepaid expenses ($1,080)

+ Accounts payable increase $3,200

- Decreased wages payable ($2,720)

Net cash $146,150

b) Briefly explain why net cash flow from operating activities is different other than net income.

The reason is that while net income refers to the earned profit by a company for a period ; cash flow from operating activities are measurement of daily cash (in and out) expended on business operation. Cash flow give explanation on the use of cash in an organization on a daily basis which includes net income from the income statement, changes in working capital, adjustments to net profits etc. t is to be noted that the starting point of calculating cash flow from operating activities is the net income.

​Keith, an employee of​ Sunbeam, Inc., has gross salary for May of​ $15,000. The entire amount is under the OASDI limit of​ $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of​ 20%. Which of the following is a part of the journal entry to record the disbursement of his net​ pay? (Assume a FICAOASDI Tax of​ 6.2% and FICAMedicare Tax of​ 1.45%.) (Round the final answer to the nearest​ dollar.)

Answers

Answer:

there are no options listed, but the journal entry to record Keith's salary should be:

May 31, wages expense

Dr Wages expense 15,000

Dr FICA taxes expense 1,147.50

Dr FUTA taxes expense 900

    Cr Federal income taxes withheld payable 3,000

    Cr FICA OASDI taxes withheld payable 930

    Cr FICA Medicare taxes withheld payable 217.50

    Cr FICA OASDI taxes payable 930

    Cr FICA Medicare taxes payable 217.50

    Cr Wages payable 10,852.50

I didn't include SUTA taxes or any other discount (e.g. health insurance, IRA contributions, union contributions, etc.) because sometimes they do not exist, but the previous ones always exist.

ane is planning to offer a Groupon for inner tube rentals that she will distribute on hot, sunny, summer days by the river that runs through her town. Based on her past experience with Groupon, she has assigned the following probability distribution to the number of tubes she will rent on a randomly selected day. If Jane would like her expected revenue to be at least $300 per day, what should the Groupon price be? (Round your answer up to the nearest whole dollar amount.)

Answers

Probability assigned:|

x 30 60 120 180

P(x) .10 .40 .40 .10

Answer:

Jane

Price of Groupon for a revenue of $300 is:

$3

Explanation:

a) Data and Calculations:

Expected Sales volume:

Number of Tubes  x   30     60      120     180

Probability P(x)           .10     .40      .40      .10

Expected values          3      24       48       18

Total = 93 tubes

Groupon price = $300/93 = $3.23

b) Jane's price for each Groupon will be the rent revenue per day divided by the expected number of tubes to rent daily.  The expected number of tubes is derived by multiplying each expected number of tubes by its probability and then summing up the results.

Prepare the journal entry to record Jevonte Company’s issuance of 35,000 shares of its common stock assuming the shares have a: $3 par value and sell for $22 cash per share. $3 stated value and sell for $22 cash per share.

Answers

Answer: Please see answer in explanation column

Explanation:

a)journal entry to record Jevonte Company’s issuance at $3 par value and $22 cash per share

Account                                            Debit                        Credit

Cash(35,000 x $22)                       $770,000

Common stock, $3 par value(35,000 x 3)                       $105, 000

Paid-in captial in excess of par value, common stock

($770,000  - $105, 000 )                                                      $665,000

b)journal entry to record Jevonte Company’s issuance at $3 stated  value and $22 cash per share

Account                                            Debit                        Credit

Cash  (35,000 x $22)                    $770,000

Common stock, $3 stated value (35,000 x 3)                 $105, 000

Paid-in captial in excess of stated value, common stock

($770,000  - $105, 000 )                                                      $665,000

Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $1.84 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.94 percent and a cost of equity of 11.49 percent. The debt–equity ratio is .71 and the tax rate is 40 percent. What is the net present value of the project?

Answers

Answer:

NPV = $1.22  million

Explanation:

The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.  

NPV of an investment:  

NPV = PV of Cash inflows - PV of cash outflow  

To work oit the NPV we would need to determine the discount rate i.e cost of capital as follows:

Cost of capital -discount rate -

WACC = We×Ke + Wd×Kd

After cost o debt = 5.94× (1-0.4)=3.56

WACC = (0.71×3.56 %)  + (0.29×11.49%)=5.86 %

PV of cash inflow = A× (1- (1+r)^(-n))/r

A- annul cash inflow, r- 5.86%, n- 7

PV of cash inflow= 1.84 million × (1- 1.0586^(-7))/0.0586 =10.32

Initial cost = 9.1 million

NPV = 10.32  - 9.1 =  1.22 million

NPV = $1.22  million

If the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of interest rates being increased? Borrowing will decrease. Investing will decrease. Inflation will increase. Liquidity will increase.

Answers

Answer:

The answer is: interest rates will decrease

Explanation:

Just got correct on edge

If there is an increase in the interest rate, then borrowing will decrease.

The term "domino effect" refers to the cumulative effect that is produced by one event that eventually leads to the same effect on others. In other words, the domino effect is when one disaster affects or brings destruction or disruption to others, leading to similar events.

One result will lead to a chain reaction in this event, affecting the rest of the cycle. This means that like one domino's downfall brings the next domino down, one destruction will lead to the fall of the next, taking the cycle to the end until all falls. In this scenario, if the interest rates are being increased, then it will lead to a decreased rate of borrowing. A change in the money supply will increase the interest rate. This will only leave the customers looking for a way out, which means there will be a lower rate of borrowing.

In a domino effect, one event will bring the fall of the other. Therefore, if the interest rates increase, there will only be more problems for the customers. This will leave them reducing or decreasing the borrowing rate in the market. Thus, the correct answer is the first option.

Learn more about "domino theory" here:

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Luther Corporation Consolidated Balance Sheet December​ 31, 2006 and 2005​ (in $​ millions) Assets 2006 2005 Liabilities and ​Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 58.5 Accounts payable 73.5 Accounts receivable 39.6 Notes payable​ / shortterm debt 9.6 Inventories 42.9 Current maturities of longterm debt 36.9 Other current assets 3.0 Other current liabilities 6.0 12.0 Total current assets 144.0 Total current liabilities 132.0 LongTerm Assets LongTerm Liabilities Land 62.1 Longterm debt 168.9 Buildings 91.5 Capital lease obligations Equipment 99.6 Less accumulated depreciation ​(​) ​(52.5) Deferred taxes 22.8 22.2 Net​ property, plant, and equipment 200.7 Other longterm liabilities Goodwill 60.0 Total longterm liabilities 191.1 Other longterm assets 63.0 42.0 Total liabilities 323.1 Total longterm assets 242.7 ​Stockholders' Equity 63.6 Total Assets 386.7 Total liabilities and ​Stockholders' Equity 386.7 Refer to the balance sheet above. ​ Luther's current ratio for 2006 is closest​ to:

Answers

Answer:

Luther Corporation

Current Ratio for 2006 is closest to:

1.1 : 1

Explanation:

a) Data and Calculations:

Total Current Assets = $144 million

Total Current Liabilities = $132 million

Current Ratio = Current Assets/Current Liabilities

= $144/$132

= 1.1 : 1

b) Luther Corporation's current ratio is a liquidity measure that shows Luther's ability to pay off short-term obligations worth $132 million or those due within one year with its current assets of $144 million.  The ratio tells investors and analysts of Luther Corporation how Luther can use its current assets to pay off its current debts.  Since Luther's current ratio is higher than 1, it is considered good, depending on the industry average.  This means that Luther's current ratio of 1.1 : 1 should not be considered in isolation, but in comparison with other firms in the industry and its performance over a number of years.

Which of the following is NOT a benefit of a social media presence for a brand? Group of answer choices Social media allows companies to have a short-term focus. Social media allows marketers to establish a public voice and presence online. Social media can cost-effectively reinforce other communication activities. Social media can encourage companies to stay innovative and relevant. Social media can be used to build or tap into online communities.

Answers

Answer: Social media allows companies to have a short-term focus.

Explanation:

Social Media has made the world way more connected than it was before even with the advent of the Internet. As such, companies were able to leverage on this to improve their brand and popularity by being present on the various social media platforms.

With social media, companies have been able to marketers to establish a public voice and presence online, cost-effectively reinforce other communication activities, build online forums and communities as well as remain relevant in a fast changing world.

Companies having a short term focus as a result of social media is not a benefit of social media. A company should always think long term and even social media can help them achieve long term growth if long term marketing plans are integrated with social media marketing.

fremont which uses the high-low method reported total cost of $10 per unit its lowest production level, 5000 units. when production tripled to its highest level, the total cost per unit dropped to $5 variable cost per unit

Answers

Answer:

$2.50

Explanation:

Calculation for the estimation of   variable cost per unit

                        Units     Total cost

High method  15,000×$5  per units  =$75,000

(5,000*3)=15,000

Low  method  5,000*$10 per units=$50,000

Difference  10,000     $25,000  

Variable cost per unit =$25,000/10,000

Variable cost per unit=$2.50

Note: Based on the information given we were told that production tripled to its highest level which means the high method units will be 15,000 units (5,000 units*3)

Therefore Fremont would estimate its variable cost per unit as: $2.50

Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division’s return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,080,000 investment in equipment with a useful life of five years and no salvage value. Holston Company’s discount rate is 17%. The project would provide net operating income each year for five years as follows:

Sales $3,400,000
Variable expenses 1,450,000
Contribution margin 1,950,000
Fixed expenses:
Advertising, salaries, and other fixed
out-of-pocket costs $670,000
Depreciation 828,000
Total fixed expenses 1,498,000
Net operating income $452,000

Required:

a. Compute the project's net present value.
b. Compute the project's simple rate of return.
c. Would the company want Derrick to pursue this investment opportunity?
d. Would Derrick be inclined to pursue this investment opportunity?

Answers

Answer:

a. Project's net present value is $1,015,163.09

b. Simple rate of return is 15%

c. Yes. The reason is that the project has a positive net present value of $1,015,163.09.

d. No. The reason is that the simple rate of return of 15% obtained in part b is lower the division’s return on investment (ROI), which has been above 20% each of the last three years.

Explanation:

a. Compute the project's net present value.

To compute this, we first calculate the annual cash inflow as follows:

Annual cash inflow = Net operating income + Depreciation = $452,000 +  $828,000 = $1,,280,000

Now, the project's net present value can be calculated using the formula for calculating the present of an ordinary annuity as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value of the annual cash flow = ?

P = Annual cash inflow = $1,280,000

r = Discount rate = 17%, or 0.17

n = Equipment useful years = 5

Substitute the values into equation (1) to have:

PV = $1,280,000 * [{1 - [1 / (1 + 0.17)]^5} / 0.17]

PV = $4,095,163.09

Project's net present value = PV - Project's initial investment = $4,095,163.09 - $3,080,000 = $1,015,163.09

b. Compute the project's simple rate of return

This can be computed as follows:

Simple rate of return = Net operating income / Initial investment =  $452,000 / $3,080,000 = 0.15, or 15%

c. Would the company want Derrick to pursue this investment opportunity?

Yes. The reason is that the project has a positive net present value of $1,015,163.09.

Note that had it been the net present value of the project was negative, the company would not want to Derrick to pursue this investment opportunity since the decision of the company is based on whether the project's NPV is positive or negative.

d. Would Derrick be inclined to pursue this investment opportunity?

No. The reason is that the simple rate of return of 15% obtained in part b is lower the division’s return on investment (ROI), which has been above 20% each of the last three years.

Pursuing this investment opportunity will therefore reduce the Overall ROI of the division and Derrick will not get annual pay raises if this happens.

A small distribution organization uses a payroll company to provide employee compensation services and keep timesheet records and employee attendance history. This situation is an example of

Answers

Complete Question:

A small distribution organization uses a payroll company to provide employee compensation services and keep timesheet records and employee attendance history. This situation is an example of?

Group of answer choices.

A. Offshoring

B. Centralized work surveillance.

C. Outsourcing.

D. Telecommuting.

Answer:

Outsourcing.

Explanation:

When a small distribution organization uses a payroll company to provide employee compensation services and keep timesheet records and employee attendance history. This situation is an example of outsourcing.

Outsourcing can be defined as a contractual agreement in which a company contracts another firm (third-party) to be responsible for providing certain job functions, tasks or services rather than use employees or departments within the company.

In this scenario, the outsourcing firm or company is saddled with the responsibility of providing employees compensation services, keep timesheet records, and manage the attendance history of employees working at the outsourced distribution organization.

2. The world has now become a “global village” in many respects. a) Explain any 5 factors working to make the world “a global village” for businesses. b) Discuss 4 major reasons why businesses go global.

Answers

Answer:

the watch has been totally fed tractors working to make a words a Glover villa for measures reserve between two globin respect as a global wind I have been by practice and a business discuss and white business as a work of the word for

________ means that service quality depends on the quality of buyer-seller interaction during the service encounter.

Answers

Answer: interactive marketing

Explanation:

Interactive marketing is also referred to as event-driven marketing or trigger based marketing and it simply has to do with using an effective communication which is two-ways to enable the consumers connect directly with a company.

Interactive marketing means service quality depends on the quality of buyer-seller interaction during the service encounter.

Projectized organizations are especially effective at helping team members to maintain their discipline-specific competencies. Group of answer choices

Answers

Answer: False

Explanation:

A projectized organization is a form of organization structure is that is designed such that it is hierarchical and headed by the project manager who is typically involved in every decision that is made regarding the project as he or she is the one that team members report to.

Therefore, projectized organizations are not effective at helping team members to maintain their discipline-specific competencies.

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