Answer and Explanation:
The computation of the asset turnover for all three companies is as follows:
Particulars YRC UNP CH
Sales 4697500 19941000 13144413
Divided by
Average
total assets 1824700 55159000 3436058
Assets turnover 2.6 0.4 3.8
he next dividend payment by Savitz, Inc., will be $5.05 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $43 per share, what is the required return
Answer:
16.74%
Explanation:
Current Price = Expected Dividend / (Required Return - Growth Rate)
Required Return = (Expected Dividend / Current Price) + Growth rate
Required Return = ($5.05 / $43) + 5%
Required Return = 0.1174419 + 0.05
Required Return = 0.1674419
Required Return = 16.74%
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,400,000 $ 24,000,000 Net operating income $ 752,000 $ 2,400,000 Average operating assets $ 2,350,000 $ 8,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 18%. Compute the residual income for each division.
Answer:
1. Osaka ROI 32 %
Yokohoma ROI 30%
2.Osaka Residual income $329,000
Yokohoma Residual income $960,000
Explanation:
1. Computation for return on investment (ROI) in terms of margin and turnover.
Using this formula
ROI = Net operating income/Average operating assets
Let plug in the morning
Osaka ROI = 752,000/2,350,000
Osaka ROI =32 %
Yokohoma ROI = 2,400,000/$ 8,000,000
Yokohoma ROI =30%
Therefore for return on investment (ROI) in terms of margin and turnover is :
Osaka ROI 32 %
Yokohoma ROI 30%
2. Computation for the residual income for each division.
Using this formula
Residual income = Net operating income - Required return
Let plug in the formula
Osaka Residual income= 752,000 - (2,350,000*18%)
Osaka Residual income= 752,000-423,000
Osaka Residual income = $329,000
Yokohoma Residual income = 2,400,000 - ($8,000,000*18%)
Yokohoma Residual income = 2,400,000-1,440,000
Yokohoma Residual income= $960,000
Therefore the residual income for each division is:
Osaka Residual income $329,000
Yokohoma Residual income $960,000
Why do tourism business have market cost for the printing
Answer:
Launching tourist ventures involves overcoming two major hurdles: first, the venture must be
financed; and second, demand must be generated. In particular, the marketing of tourism and
hospitality ventures provides special challenges, the ability to reach the target market and convince
them to travel to remote locations being a critical success factor (Dolli, N.; Pinfold, J.F., 1997). Thus,
the main issue related to the marketing of tourist services is not their production, but their sale and
promotion, so as to ensure that all the consumers’ needs are comprehensively satisfied. (Nistoreanu,
P., 2006).
It is in this context that both the producers as well as the suppliers (intermediaries) of tourism services
should take into consideration the fact that a touristic product is sold only if there is a demand on the
market for that particular product. This means that suppliers have the possibility to either offer what is
requested on the market, responding to the consumers’ needs, or to stimulate or generate the demand
for a certain product so as to facilitate the selling of that product. In both cases, however, the
producers and suppliers need to apply a promotion strategy, through which potential clients may be
informed with regard to the offer on the market, as well as induce the clients’ desire to consume a
certain product.
Explanation:
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $300,000, variable expenses of $152,100, and traceable fixed expenses of $70,300. The Alpha Division has sales of $610,000, variable expenses of $335,800, and traceable fixed expenses of $131,900. The total amount of common fixed expenses not traceable to the individual divisions is $133,200. What is the company's net operating income
Answer: $86700
Explanation:
The net operating income is used in knowing the profitability of an investment. The net operating income is gotten by subtracting the expenses from the revenue.
Based on the information given in the question, the net operating income is $86700. Kindly check the attachment for further details.
R&D Technology Corporation just paid a dividend of $0.50 per share. Analysts expect its dividend to grow at 24 percent per year for the next two years and then 8 percent per year thereafter. If the required rate of return in the stock is 16 percent, calculate the current value of the stock.
Answer:
$8.82
Explanation:
The computation of the current value of the stock is given below:
Given that
The dividend per share is $0.50
The growth rate is 24% for the next two years
And, then it should be 8 % per year
And, the required rate of return is 16%
Now based on the above information, the current value of the stock is $8.82
The calculation is to be shown in the attachment
Aspen Integrated Marketing used to have a strict hierarchical structure, with information given only to those who required it. The new chief executive officer, however, set up a flat organizational structure that eliminates barriers to information flow. Information that was previously available to managers alone is now given to employees as well. He also assigned mentors to new employees to help them in their jobs and enable them to perform better. At Aspen Integrated Marketing, information that was previously available to managers alone is now given to workers as well. This is an example of
Answer:
open-book management or it can also be called a boundaryless organization.
Explanation:
Open-book management
This is simply the act of sharing with employees at all levels of an organization some vital information that is somehow or previously meant for too management staff only. It also involves opening a company's financial statements to all employees and giving them the education that will enable them to understand how the company makes money and how their actions affect its success and bottom line.
Boundaryless organization
This is simply known as a form of organization structure in which there are no barriers to information flow. Boundaryless designs include barrier-free, modular and virtual organizations. An organization without barriers has permeable internal and external boundaries and requires higher level of trust and shared interests, a shift in philosophy from executive development to organizational development, greater use of teams etc.
A company is considering eliminating a department that has an annual contribution margin of $33,000 and $66,000 in annual fixed costs. Of the fixed costs, $16,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: Multiple Choice ($33,000) $33,000 ($16,500) $16,500
Answer:
($16,500)
Explanation:
Calculation to determine The annual financial advantage (disadvantage) for the company of eliminating this department would be
First step is calculate the Avoidable fixed costs
Avoidable fixed costs = $66,000 − $16,500
Avoidable fixed costs = $49,500
Now let determine Segment Margin
Contribution Margin $33,000
Less Avoidable fixed costs $49,500
Segment Margin ($16,500)
Therefore The annual (disadvantage) for the company of eliminating this department would be ($16,500)
During its most recent fiscal year, Raphael Enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. Fixed costs amounted to $729,000 and pretax income was $999,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question
Answer:
$2,889,000
Explanation:
Sales units = 270,000 units
Sale Price = $17.10
Fixed cost = $729,000
Sales Value = 270,000 * $17.10
Sales Value = $4,617,000
Contribution Margin = Sales- Fixed cost
Contribution Margin = $4,617,000 - $729,000
Contribution Margin = $3,888,000
Variable Cost = Contribution margin- Pretax income
Variable Cost = $3,888,000 - $999,000
Variable Cost = $2,889,000
So, $2,889,000 is the amount that should have been reported as variable costs in the company's contribution margin income statement for the year in question.
Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:
Units Materials Labor Overhead
Work in process inventory, beginning 64,000 $64,800 $27,900 $34,600
Units started in process 609,000
Units transferred out 630,000
Work in process inventory, ending 43,000
Cost added during the month $856,330 $343,735 $426,740
The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 25% complete with respect to labor and overhead.
Required:
a. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.
b. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month.
Answer:
Pureform, Inc.
Materials Labor Overhead
a. Equivalent units of production 657,950 640,750 640,750
b. Cost per equivalent unit $1.4 $0.58 $0.67
Explanation:
a) Data and Calculations:
Units
Work in process inventory, beginning 64,000
Units started in process 609,000
Units available for processing 673,000
Units transferred out 630,000
Work in process inventory, ending 43,000
Materials Labor Overhead
Work in process inventory, beginning $64,800 $27,900 $34,600
Cost added during the month $856,330 $343,735 $426,740
Total production costs for the month $921,130 $371,635 $430,200
Equivalent units of production:
Units Materials Labor Overhead
Units transferred out 630,000 630,000 630,000 630,000
Work in process inventory, ending 43,000 27,950 10,750 10,750
Equivalent units of production 657,950 640,750 640,750
Cost per equivalent unit:
Materials Labor Overhead
Total production costs for the month $921,130 $371,635 $430,200
Equivalent units of production 657,950 640,750 640,750
Cost per equivalent unit $1.4 $0.58 $0.67
When looking to advertise a new business online, what is one of the major benefits of display ads?
ai là người giàu nhất thế giới
Answer:
Jeff Bezos
Explanation:
Jeff Bezos là người sáng lập Amazon và có giá trị tài sản ròng là 205 tỷ USD
Đây là danh sách các nhà vận chuyển tiền được xếp hạng:
https://www.forbes.com/real-time-billionaire/#114ff8bb3d78
Jeff Bezos is the founder of Amazon and has a net worth of $205 billion Here's a list of billionaire's ranked:
https://www.forbes.com/real-time-billionaires/#114ff8bb3d78
At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Answer:
Results are below.
Explanation:
Giving the following information:
The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Number of units= 6,400
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Absorption method:
Unit product cost= direct material + direct labor + total unitary overhead
Unit product cost= 75 + 35 + 15 + 12
Unit product cost= $137
Total ending inventory cost= 137*6,400
Total ending inventory cost= $876,800
Variable costing method:
Unit product cost= direct material + direct labor + variable overhead
Unit product cost= 75 + 35 + 12
Unit product cost= $122
Total ending inventory cost= 122*6,400
Total ending inventory cost= $780,800
XYZ has two divisions: South and West. Overall net operating income is $26,900. South Division's segment margin is $42,800 and West Division's segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions?
a. $45,800.
b. S56800.
с.$69,700.
d. $72,700.
Answer:
a. $45,800.
Explanation:
The computation of the common fixed expense not traceable is given below
Combined segment margin of two divisions ($42,800 + $29,900) $72,700
Less: net income -$26,900
Non traceable fixed cost $45,800
Hence, the amount of the common fixed expense not traceable to the individual divisions is $45,800
Therefore the option a is correct
If the price of oil, a close substitute for coal, increases then:
a. the demand curve for coal will shift to the right.
b. equilibrium price and quantity of coal will not change.
c. supply curve for coal will shift to the right.
d. demand curve for coal will shift to the left.
e. supply curve of coal will shift to the left.
Answer:
A
Explanation:
Substitute goods are goods that can be used in place of another good.
if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.
If the price of oil increases, it becomes cheaper to buy coal. As a result, there would be a rightward shift of the demand curve for coal. As a result, the equilibrium price and quantity would increase
Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information.
Car Truck
Estimated wheels produced 40,000 10,000
Direct labor hours per wheel 1 3
Total estimated overhead costs for the two product lines are $770,000.
Required:
a. Calculate overhead rate.
b. Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs.
A) Direct labor hrs for car wheels = estimated wheels *direct labor per wheel
40,000 *1hr = 40,000
Direct labor hrs for Truck
10,000 * 3hr= 30,000
total direct labor hrs 40,000+30,000 = 70,000 hrs
Overhead rate is total est oh cost/ total direct labor hrs
770,000/70,000= 11.00
B) Car truck wheels 40,000*11 =440,000
Truck wheels 10,000*11=110,000
Company XYZ is working on a marketing strategy for a new oral hygiene product and just discovered that XYZ's biggest competitor is launching a very similar product a month later. In conducting a SWOT analysis, the launch of the competitor's product represents an opportunity.
a. True
b. False
Answer:
XYZ Company
In conducting a SWOT analysis, the launch of the competitor's product represents an opportunity.
b. False
Explanation:
The launch of the competitor's product represents a threat to XYZ Company. It reduces XYZ Company's market competitiveness and profitability. XYZ Company may even be driven out of the market by the competitor, thus leading to massive loss for the company. However, threats must be overcome and turned into opportunities for future product development.
Which of the following The holding-period return (HPR) on a share of stock is equal to(s) the level of real interest rates? I) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds
Answer: D. I, II, and III.
Explanation:
The demand for investment funds determines the demand for loanable funds and when this is higher than the supply, the rate increases. The reverse it true. It therefore affects real interest rates.
The savings of households and business firms are the source of loanable funds so if these are high relative to demand, the rate will decrease. The reverse is true.
Government demand for funds will increase interest rates as the supply will decrease when the government borrows massively. The reverse is true.
All three therefore impart real interest rates.
When comparing the results of using the direct, sequential, and reciprocal services methods of allocating support department costs to production departments, which of the following statements is true for a manufacturing company that has a total of $1,500,000 in support costs to allocate?
a.The reciprocal services method allocates more than $1,500,000 to the production departments.
b.The reciprocal services method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the direct method.
c.The direct method yields the most accurate allocation of the $1,500,000.
d.The sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method.
Answer: d. The sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method
Explanation:
For a a manufacturing company that has a total of $1,500,000 in support costs to allocate, it should be noted that the sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method
Accurate Metal Company sold 36,500 units of its product at a price of $340 per unit. Total variable cost per unit is $179, consisting of $172 in variable production cost and $7 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.
Answer: $6,132,000
Explanation:
The manufacturing margin for the company under variable costing will use the variable production costs only as these are the variable costs incurred during manufacturing:
Variable manufacturing margin = ( Sales price - Variable cost per unit) * number of units
= (340 - 172) * 36,500
= 168 * 36,500
= $6,132,000
World-Tour Co. has just now paid a dividend of $2.83 per share (Div0); its dividends are expected to grow at a constant rate of 6 percent per year forever. If the required rate of return on the stock is 16 percent, what is the current value of the stock, after paying the dividend
Answer:
the current value of the stock is $30
Explanation:
The computation of the current value of the stock is given below:
Price of stock today is
= Dividend per share × (1 + growth rate) ÷ (required rate of return - growth rate)
= $2.83 × (1 + 0.06) ÷ (0.16 - 0.06)
= $2.9998 ÷ 0.10
= $29.9980
= $30
Hence, the current value of the stock is $30
Rachel is preparing to open her own raft rental business, cleverly named Rachel's Rafts. She figures out that her fixed costs will be $7,500 and her unit variable costs are $2 per raft. She plans to rent all 2,500 rafts she has on hand. What is Rachel's breakeven price
Answer:
selling price= $5
Explanation:
Giving the following information:
Fixed cost= $7,500
Unitary variable cost= $2
Break-even point= 2,500 units
The break-even point is the number of units to sell to cover the fixed costs. At this level, net income is zero.
So given the costs structure and 2,500 units to sell, the selling price that provides the break-even point is:
Break-even point in units= fixed costs/ (selling price - unitary variable cost)
2,500 = 7,500 / (selling price - 2)
2,500selling price - 5,000 = 7,500
2,500selling price = 12,500
selling price = 12,500 / 2,500
selling price= $5
Ice Co stock has a beta of 1.85, the current risk-free rate is 5.10 percent, and the expected return on the market is 15.10 percent. What is Ice Co's cost of equity
Answer:
23.60%
Explanation:
According to the capital asset price model:
cost of equity = risk free + beta x (market rate of return - risk free rate of return)
5.10 + 1.85 x (15.10 - 5.10)
= 5.10 + (1.85 x 10)
=23.60%
Money spent on groceries is an example of a/an
When marginal revenue equals marginal cost, the firm a. should increase the level of production to maximize its profit. b. may be minimizing its losses rather than maximizing its profit. c. must be generating positive economic profits. d. must be generating positive accounting profits.
When marginal revenue is equal to the marginal cost, then the firm should increase the level of production to maximize its profit.
Marginal revenue simply means the increase in revenue that a company makes as a result of selling an additional output of good. Marginal cost is the cost that a company incurs for production of one extra unit of good.
It should be noted that when the marginal cost if a firm is more than the marginal revenue, it means that the firm is producing too much.
When the marginal revenue of the firm equals the marginal cost, then the firm should maximize its profit.
The correct option is A.
Read related link on:
https://brainly.com/question/10822075
If a firm was receiving subsidies from its government to produce and lower its operating costs, what may happen when going to sell its products to other countries
Answer:
Government subsidies some countries soften bed
Name 2 of the 4 structures a business can have
Answer:
4 Types of Legal Structures for Business:
Sole Proprietorship. General Partnership. Limited Liability Company (LLC) Corporations (C-Corp and S-Corp)A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimated at $600 million. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accountants in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridge project
Answer:
$18.20 million
Explanation:
Net present value = Initial cost + (Annual cost/3%)
Net present value = $600 million + $200,000/3%
Net present value = $600 million + $6.67 million
Net present value = $606.67 million
Annualized cost = Net present value * 3%
Annualized cost = $606.67 million * 3%
Annualized cost = $18.20 million
So, the annualized cost of the bridge project is $18.20 million.
Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must be set on the preferred in order to issue it at par? (hint: a portion of dividends are tax-exempt for corporate investors).
The coupon rate must be set at 9.77%
The after-tax return on the bonds is:
= Annual payment rate * ( 1 - tax rate)
= 8.1% * ( 1 - 40%)
= 4.86%
The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:
= 4.86% + 1%
= 5.86%
If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:
= After tax yield / ( 1 - tax rate)
= 5.86% / ( 1 - 40%)
= 9.77%
More on this type of question can be found at https://brainly.com/question/17126608
Answer:
9.77 is the correct answer
i think this helps u
Mott Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $37, $47, and $57, respectively Variable costs per unit are $30, $31, and $34, respectively. Fixed costs are $456,000. What is the break-even point in composite units?
a) 1.239 composite units
b) 1357 composite units
c) 2763 composite units
d) 4,606 composite units.
Answer:
6,000 composite units
Explanation:
A B C Total
Selling price per unit 37 47 57
Less: Variable cost per unit 30 31 34
CM per unit 7 16 23
Sales mix 3 2 1
CM per sales mix 21 32 23 76
Break even in composite unit = Fixed cost / CM per sales mix
Break even in composite unit = $456,000 / 76
Break even in composite unit = 6,000
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $308,000 and in Allowance for Uncollectible Accounts of $910 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. Bad debt expense for the year should be: Multiple Choice $13,230. $12,320. $11,410. $11,911.
