Answer:
Economic sustainability
Explanation:
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $580,000. The ovens originally cost $778,000, had an estimated service life of 10 years, and an estimated residual value of $48,000. New Morning Bakery uses the straight-line depreciation method for all equipment. Required: 1. Calculate the balance in the accumulated depreciation account at the end of the second year.
Answer:
The balance in the accumulated depreciation account at the end of the second year is $146,000.
Explanation:
Straight line method charges a fixed depreciation charge on the asset during its period of use.
Depreciation Expense (Straight line) = Cost - Residual Amount ÷ Estimated Useful life
= $778,000 - $48,000 ÷ 10
= $73,000
Therefore, for each year, a depreciation expense of $73,000 is charged to profit an loss.
Accumulated Depreciation Calculation :
Depreciation Expense : Year 1 $73,000
Depreciation Expense : Year 2 $73,000
Total Expense $146,000
Sheffield Corp. determines that 53000 pounds of direct materials are needed for production in July. There are 3100 pounds of direct materials on hand at July 1 and the desired ending inventory is 2700 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases
Answer:
Budgeted total cost of Direct Material purchases ($) =$ 157,800
Explanation:
Raw material purchase budget is determined by adjusting the raw material usage budget for opening and closing inventory of materials.
Purchase budget = usage budgeted + closing inventory - Opening inventory
Material purchase budget = 53,000 + 2,700 - 3,100= 52,600 pounds
Note the closing inventory represents the stock of materials needed to be kept, hence it will increase the purchase budget. So we added.
On the other hand hands, the opening inventory represented what already existed , hence we subtracted it as it will reduce what will be required.
Material purchase budget ($) = purchase budget in quantity × standard price per quantity
Material purchase budget = 52,600 × $3 = $ 157,800
Budgeted total cost of Direct Material purchases ($) =$ 157,800
g A decrease in the basis will __________ a long hedge and __________ a short hedger. Group of answer choices hurt; hurt hurt; benefit benefit; have no effect upon benefit; benefit benefit; hurt
Answer:
1. hurt
2. benefit
Explanation:
Given that a contract and an asset are to be converted in cash early, this implies that, basis risk exists and futures price and spot price should not move in lockstep before delivery date. However, a reduction in the basis will then hurt the long hedger and benefit the short hedger.
Hence, considering the nature of the hypothetical situation, a decrease in the basis will HURT a long hedge and BENEFIT a short hedge.
In a concentrated network configuration:
a. firms perform a supply chain activity in one location and serve foreign locations from it
b. firms allow each site on the network to operate with full autonomy
c. firms tightly link operations and supply chain activities to one another
d. firms perform a supply chain activity in various countries
Answer:
B
Explanation:
Here, in this question, we are to select which of the options is best.
The correct answer to this question is that in a concentrated network configuration, firms allow each site on the network to operate with full autonomy.
What this means is that each site in the network operate independently of the other sites.
A site is thus an autonomous entity but still part of the concentrated network
On February 20, services valued at $60,000 relating to the organization of a corporation were performed in exchange for 1,000 shares of its $25 par value common stock.
Make the necessary journal entry.
Answer: The solution has been attached
Explanation:
From the question, we are informed that on February 20, services valued at $60,000 relating to the organization of a corporation were performed in exchange for 1,000 shares of its $25 par value common stock.
The common stock was calculated as:
= 1000 × $25
= $25,000
The paid on capital in excess of the par common stock was calculated as:
= $60,000 - $25,000
= $35,000
The journal has been solved and attached.
A company is considering a project with a beta of 0.5 while the company’s beta is 2.0. How should the company adjust its WACC to reflect the riskiness of the project? g
Answer: decrease
Explanation:
The weighted average cost of capital is a vital calculation that is used in finance to know whether the return on an investment will meet or exceed exceed a project or an asset.
If a company is considering a project with a beta of 0.5 while the company’s beta is 2.0, to reflect the riskiness of the project, the WACC will be reduced.
Consider the following information and then calculate the required rate of return for the Global Investment Fund, which holds 4 stocks. The market’s required rate of return is 13.25%, the risk-free rate is 7.00%, and the Fund’s assets are as follows:(hint: market beta =1.0) Stock Investment Beta A $ 200,000 1.50 B 300,000 −0.50 C 500,000 1.25 D $1,000,000 0.75
Answer:
11.77%
Explanation:
total investment = $200,000 + $300,000 + $500,000 + $1,000,000 = $2,000,000
stock weight beta total
A $200,000 / $2,000,000 1.5 0.15
B $300,000 / $2,000,000 -0.5 -0.075
C $500,000 / $2,000,000 1.25 0.3125
D $1,000,000 / $2,000,000 0.75 0.375
Portfolio 0.7625
required rate of return = Rf + beta(Rm - Rf) = 7% + 0.7625(13.25% - 7%) = 11.7656% = 11.77%
People decide to save 20 percent of their incomes. The value of the marginal propensity to consume is ________ and the value of the spending multiplier is ________.
Answer: 0.8; 5
Explanation:
From the question, we are informed that people decide to save 20 percent of their incomes. We should note that the addition of the marginal prospensity to consume(MPC) and the marginal prospensity to save(MPS) will be equal to 1.
Therefore, the value of the marginal propensity to consume will be:
= 1 - 20%
= 1 - 0.2
= 0.8
The value of the spending multiplier will be calculated as:
= 1/MPS
= 1/0.2
= 5
A company sold equipment that originally cost $290,000 for $145,000 cash. The accumulated depreciation on the equipment was $145,000. The company should recognize a:
Answer:
$0 gain/loss
Explanation:
A company sold an equipment that originally cost $290,000 for $145,000
The accumulated depreciation on the equipment was $145,000
The first step is to calculate the book value of the equipment
Book value of the equipment= Cost of equipment-accumulated depreciation
= $290,000-$145,000
= $145,000
Therefore, the gain/loss on the equipment can be calculated as follows
= Selling price-book value
= $145,000-$145,000
= 0
Hence there is no recognized gain or loss on the equipment
Answer:
Company would recognize a no loss or gain on the disposal i.e Nil
Explanation:
The gain or loss on disposal is the difference between the carrying value of an assets at the point of disposal and the the disposal value.
Gains/(Loss)= Disposal value - carrying value
The carrying value is the difference between the historical cost and the accumulated depreciation till date.
Carrying value = Historical cost - Accumulated depreciation till date
Carrying value = 290,000 - 145,000 = 145 ,000
Gains/Loss= 145,000 - 145,000 = 0.
Company would recognize a no loss or gain on the disposal i.e Nil
1. Name one practice that is prohibited under Section 8 of RESPA.
2. List at least three categories under ECOA on which creditors may not base credit decisions.
3. Define rescission as it relates to a mortgage loan transaction.
4. List at least two practices that are not prohibited with regard to appraisers.
Answer:
The answer is below
Explanation:
1. Pactice that is prohibited under Section 8 of RESPA includes the following:
i. Payment or Receive of "things of value" for business referrals
ii. Fee splitting when the job or work is yet to be done, to earn a part of the fee
iii. Excessive charges such as mark-ups, double billing, etc.
iv. Void agreement or understanding with regard to referrals and settlement services
2. Categories under ECOA on which creditors may not base credit decisions are:
Race, Color, Religion, Nationality, Sex, Marital status, Age, Receipt of public assistance and Exercise of rights under the Consumer Credit Protection Act
3. Rescission is a term that describes a form of legal remedy that voids an agreement between two parties and take back both parties to the initial state before the transaction.
Recission right is however applicable to specific loan transactions, for example refinances and home equity lines of credit.
4. Practices that are not prohibited with regard to appraisers.
i. Payment or Receive of "things of value" for business referrals
ii. Fee splitting when the job or work is yet to be done, to earn a part of the fee
iii. Excessive charges such as mark-ups, double billing, etc.
iv. Void agreement or understanding with regard to referrals and settlement services.
The answer to the queries given above are stated as follows:-
1. Cash or other 'things of value' as defined under section 8 of the Act are stated to be not to be used by any such firm for the purpose of business referrals.
2. A banking or financial institutions providing credit facilities may not base their credit decisions on factors like race, sex, religion, nationality, beliefs, etc which are irrelevant to the credibility of a borrower in the market.
3. Rescission relates to the revoking, calling back, reversing the judgement passed by the law and make necessary amendments to the law as may be deemed fit.
4. An appraiser may not try to influence the property through the way of wrongful behavior like fraud,coercion or impersonation. And any other such act which relates to criminal conduct must be avoided by the appraiser.
Things of value refer to such assets or class of assets that are easily liquidated and their values are easily realizable due their liquidity and acceptability in the market.There shall be no discrimination for providing credit facilities on the bases of unrelated phenomenon such as sex, religion, race, castes of a person and shall be purely based on credibility of such person.Rescission relates to the mortgage loan transaction in a way that it is available to the parties of such transaction in cases where there is refinancing or a home mortgage against finance facility.Any such agreements which are void ab initio, void during the contract or voidable at the end of any party are not allowed for appraisers so it can be concluded that only legally bound contracts are allowed.There shall be no acts of impersonation, frauds leading to coercion are also prohibited in case of appraisers of a property so only genuine appraisal of a property is allowed.Hence, the correct statements are mentioned above for all the queries as asked under the headings of 1, 2, 3 and 4 and hold true.
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https://brainly.com/question/25403846
dazzle, inc. produces beads for jewelry making use the journal entry to record production activities for direct labor usage is
Answer:
Debit Work in Process Inventory $180,000; credit Factory Wages Payable $180,000.
Explanation:
The journal entry to record the direct labor usage is shown belwo:
Work in process inventory Dr
To factory wages payable
(Being the direct labor usage is recorded)
For recording this we debited the work in process as it increased the assets and credited the factory wages payable as it also increased the liabilities
Moreover, when the wages is applied in the production level so the respective account is debited and credited
Which of the following stocks is less risky? Stock Average Return Standard Deviation Coefficient of Variation X 10% 40% 4 Y 20% 40% 2
Answer:
Stock X has a CV of 4 while Stock Y has a CV of 2. As stock Y has a lower CV than Stock X, it is less riskier.
Explanation:
The coefficient of variation is a statistical model which is also used to determine the volatility per unit of a factor. In terms of a stock, the coefficient of variation calculates the volatility of its return. It is calculated by dividing the stock's standard deviation, which is a measure of risk, by the stock's mean return or expected return.
CV = SD / r
Where,
CV is coefficient of variationSD is standard deviationr is expected returnThe CV of a stock tells us the risk per unit of return. The higher the CV, the riskier the stock and vice versa.
Stock X has a CV of 4 while Stock Y has a CV of 2. As stock Y has a lower CV than Stock X, it is less riskier.
The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations. Ignoring other factors, this is likely to result in:
Answer: decrease in interest rates and an increase in inflation
Explanation:
From the question, we are informed that The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations.
This will result in a reduction in the interest rate and since there's more money in circulation, it will bring about an increase in the prices of goods.
Refer to the following scenario to answer the following questions.
Five fishermen live in a village and have no other employment or income-earning possibilities besides fishing. They each own a boat that is suitable for fishing but does not have any resale value. Fish are worth $5 per pound, and the marginal cost of operating the boat is $500 per month. They all fish a river next to the village. According to the following schedule, they have determined that when there are more of them out on the river fishing, they each catch fewer fish per month.
Boats Fish Caught per
Boat (pounds)
1 200
2 190
3 175
4 155
5 130
How many fishermen will choose to operate their boats?
Answer:
5 fishermen will choose to operate their boats as each of them will earn a profit of $150
Explanation:
Per boat operating cost = $500 per month.
Price of fish = $5 per pound.
There are 5 fishermen and each fishermen has 1 boat.
For 1 boat
Total revenue = Price * quantity = $5 * 200 = $1,000
Cost = $500
Profit = Total revenue - Cost = 1000 - 500
Profit = $500.
For 2 boats
Total Revenue of each boat = $5 * 190 = $950
Cost of each boat = $500
Profit of each boat = Total revenue - Cost = 950 - 500
Profit of each boat = $450.
For 3 boats
Total Revenue of each boat = 5 * 175 = $875
Cost of each boat = $500
Profit of each boat = TR - Cost = 875 - 500
Profit of each boat = $375
For 4 boats
Total Revenue of each boat = 5 * 155 = $775
Cost of each boat = $500
Profit of each boat = TR - Cost = 775 - 500
Profit of each boat = $275
For 5 boats
Total Revenue of each boat = 5 * 130 = $650
Cost of each boat = $500
Profit of each boat = TR - Cost = 650 - 500
Profit of each boat = $150.
Conclusion: As there are 5 fishermen and if all of them out on the river at the same time then each fisherman earns profit of $150. As all fishermen earns profit hence all of them will choose to operate their boats. Therefore, 5 fishermen will be ready to operate their boats.
Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 18 minutes Supervisor salaries $250,000 per month Depreciation $18,500 per month Direct labor rate $28 per hourRequired:Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department.
Answer:
Total department cost of 70,000 units = $856,500
Total department cost of 80,000 units = $940,000
Total department cost of 90,000 units = $1,024,500
Explanation:
Note: See the attached excel file for the flexible budget.
A flexible budget is a budget that changes, flexes or adjusts as the volume, activity or unit of production changes.
For this question, the direct labor cost for each unit can be calculated as follows:
Direct labor time per filing cabinet in minutes = 18
Number of minutes in one hour = 60
Direct labor rate per minute = Direct labor rate per hour / Number minutes in one hour = $28 / 60 = $0.466666666666667
Direct labor cost per filing cabinet = Direct labor time per filing cabinet in minutes * Direct labor rate per minute = 18 * $0.466666666666667 = $8.40
Direct labor cost of a particular units of production = Direct labor cost per filing cabinet * Number of units of production ................... (1)
Using equation (1), the Direct labor cost of different units of production used in the attached excel file is calculated as follows:
Direct labor cost of 70,000 units = $8.40 * 70,000 = $588,000
Direct labor cost of 80,000 units = $8.40 * 80,000 = $672,000
Direct labor cost of 90,000 units = $8.40 * 90,000 = $756,000
Consider a 10 year bond with a face value of $1000 that has a coupon rate of 5.3%, with semiannual payments. What is the coupon payment for this bond?
Answer:
$26.5
Explanation:
the question says that the bond has a face value equal to 1000 dollars
coupon rate = 5.3%
and that the bond pays semiannually. semiannually means that it pays after 6 months.
semi annual coupon payment formula is given by = coupon rate/2 multiplied by face value
= 5.3%/2 multiplied by 1000
= 0.0265 x 1000
= $26.5
therefore from this calculation, the coupon payment on the bond is $26.5 dollars in every six months or semiannually.
On January 1, 2018, Waller Sales issued in bonds for . These are eightyear bonds with a stated rate of %, and pay semiannual interest. Waller Sales uses the straightline method to amortize the bond discount. After the second interest payment on December 31, 2018, what is the bond carrying amount? (Round your intermediate answers to the nearest cent, and your final answer to the nearest dollar.)
Answer:
Carrying value December 31, 2018 = $24,137.50
Explanation:
the numbers are missing, so I looked for a similar question to fill in the blanks:
Waller Sales issued $30,000 in bonds for $23,300. These are eight-year bonds with a stated rate of 11%The journal entry to record the issuance of the bonds:
January 1, 2018, bonds are issued at a discount:
Dr Cash 23,300
Dr Discount on bonds payable 6,700
Cr Bonds payable 30,000
discount amortization = $6,700 / 16 coupons = $418.75 per coupon payment
First and second coupon payments:
June 30 (or December 31), 2018, coupon payments
Dr Interest expense 3,718.75
Cr Cash 3,300
Cr Discount on bonds payable 418.75
Carrying value June 30, 2018 = $23,300 + $418.75 = $23,718.75
Carrying value December 31, 2018 = $23,300 + $418.75 = $24,137.50
Bank's Balance Sheet Assets Liabilities and Owners' Equity $1,600 $250 Securities $1,000 Capital (owners' equity) $150 Reserves$200 Deposits Loans $800 Debt Suppose the owners of the bank borrow $100 to supplement their existing reserves.
This would increase the reserves account and ______ the ______ account.
This would also bring the leverage ratio from its initial value of __________ to a new value of_______
Which of the following is true of the capital requirement?
a. The higher the percentage of assets a bank holds as loans, the higher the capital requirement.
b. A minimum leverage ratio for all banks.
c. Its intended goal is to protect the interests of those who hold equity in the bank.
Answer:
1. This would increase the reserves account and increase the debt account.
Borrowing refers to debt and so it will increase the debt account.
2. This would also bring the leverage ratio from its initial value of 13.33 to a new value of 14.
The bank leverage ratio refers to its Assets divided by Capital (Owners equity).
Before the $100 was borrowed, the leverage ratio was;
= (Reserves + loans + securities)/Capital
= ( 200 + 800 + 1,000) / 150
= 13.33
After the $100 was borrowed
= ( 200 + 800 + 1,000 + 100) /150
= 14.
3. a. The higher the percentage of assets a bank holds as loans, the higher the capital requirement.
The capital requirement is meant to protect depositors in case the loans are defaulted on as the loans are created from the funds depositors bring in. Should the loans be defaulted on, they will be paid from the capital therefore if the bank holds more loans, it will have to hold more capital to ensure it can cover those loans.
Amos Manufacturing has two major departments. Management wants to compare their relative performance. Information related to the two departments is as follows:Division 1:Sales: $200,000Expenses: $150,000Asset investment: $950,000Division 2:Sales: $45,000Expenses: $35,000Asset investment: $200,000Based on ROI, which division is more profitable?a. Division 1b. Both divisions have the same ROI ratioc. Division 2
Answer:
Division A is doing better and his more profitable because it has a higher ROI than Division B
Explanation:
Return on Investment is the proportion of operating assets that an investment center earned as as net operating income.
ROI is measure of the returned earned by a division relative to the amount invested in the assets used to generate the return.
It is calculated as follows
ROI = operating income/operating assets
Division A
Net operating income = Sales - expenses
Net operating income = 200,000 - 150,000 = 50,000
Operating assets = 950,000
ROI = 50,000/950,000× 100 = 5.26 %
Division B
Net operating income = 45,000 - 35,000 = 10,000
Operating assets = 200,000
ROI = 10,000/ 200,000 × 100 = 5 %
Division A is doing better and his more profitable because it has a higher ROI than Division B
Use your own language to explain that short run supply curve by a price-taking firm is the positively-sloped portion of the short-run marginal cost curve.
Answer:
See the answer and explanation below
Explanation:
A price-taking firm is a firm in a perfectly competitive market where all firms are price takers. That is, no firm in a perfectly competitive can influence the price as only the market determines the price.
The short run supply curve for a price-taking firm refers to the short marginal cost (SMC) curve at and above the shutdown point.
Note: See the attached graph for the shut run supply curve. Also note that point E in the attached graph is the shutdown point.
The shutdown point is the point where the short run marginal cost (SMC) is equal to the average variable cost (AVC) (i.e. where MC = AVC = Shutdown point).
This indicates that the short-run supply curve for a price-taking firm is the part of the SMC curve that lies above AVC curve.
The part of the SMC curve that lies below the AVC or the shutdown point is not part of the short run supply curve of a price-taking firm, because the firm is not engaging in any production at that point.
Therefore, the short run supply curve of a price-taking firm is the increasing portion of the short run MC curve above the shutdown point.
This follows the law of supply which states that more quantity of the product of a firm will be supplied when there is a rise in the market price.
In summary, the short run supply curve of a price-taking firm is the positively-sloped portion of the short-run marginal cost curve
The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is Group of answer choices a situation that neither restrains trade nor harms competition. not within the scope of the Sherman Act. a per se violation of antitrust law. subject to analysis under the rule of reason.
Answer:
a per se violation of antitrust law.
Explanation:
The antitrust laws can be defined as those laws that are created by the US government to protect consumers from unfair means of competition in market. The aim of creating such laws is to ensure the protection of customers from corruptive business practices and also to ensure safe healthy competitive environment among same business companies.
In the given scenario, the Association of Organic Food Growers is violating the antitrust law by boycotting farmers, ranchers, etc. The antitrust laws are violated by companies in several ways among them is by boycotting.
Boycotting can be defined as an agreement between several companies that excludes a group of customers or market to avert them from buying aanyy goods or products.
This boycotting agreement is a per se violation of antitrust law.
The ratio of sales to invested assets, which is also a factor in the DuPont formula for determining the rate of return on investment, is called
Answer:
Investment turnover
Explanation:
Investment turnover is used to compare the revenue earned by a business to the invested assets (equity or debt). It measures how effectively the business is using investment to generate profit.
The number of times investment is converted to revenue is calculated using this method (that is the turnover).
This metric is used in the Dupont formula.
Dupont formula is a financial ratio that evaluates a company's ability to increase return on equity.
Three main components of the Dupont formula are: profit margin, total asset turnover, and financial leverage.
An all-equity firm is considering the following projects:
Project Beta IRR
W .85 8.9%
X .92 10.8
Y 1.09 12.8
Z 1.35 13.3
The T-bill rate is 4 percent, and the expected return on the market is 11 percent.
a. Which projects have a higher expected return than the firm's 11 percent cost of capital?
b. Which projects should be accepted?
c. Which projects would be incorrectly accepted or rejected if the firm's overall cost of capital were used as a hurdle rate?
Answer:
Projects Y and Z
b. Projects W and Z
c. Projects W and Y
Explanation:
CAPM equation : Expected return = Risk free rate + Beta x (Expected market return - Risk free rate)
W = 4% + [0.85 x (11% - 4%)] = 9.95%
X = 4% + (0.92 x 7%) = 10.44%
Y = 4% + (1.09 x 7%) = 11.63%
Z = 4% + (1.35 x 7%) = 13.45%
Projects Y and Z have an expected return greater than 11%
b. Projects W and Z should be accepted because its expected return is higher than the IRR
c. Project W would be incorrectly rejected because the expected rate of return is less than the overall cost of capital (i.e. 9.95 is less than 11). But its expected rate of return is greater than the IRR
Y would be incorrectly accepted because its expected rate of return is greater than the overall cost of capital but its expected rate of return is less than the IRR
"Net income for the period was $200,000. The retained earnings account had a beginning balance of $25,000. If the company paid dividends of $20,000 during the year, what is the ending balance in retained earnings?"
Answer:
Retained earning balance at the end would be = $205,000
Explanation:
Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid
The net income would increase the balance of the retained earnings hence it is added to it.
The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.
So applying this to the question, we have
Retained earning balance at the end would be:
25,000 + 200,000 - 20,000 = $205,000
Retained earning balance at the end would be = $205,000
Additional business in the form of a special order of goods or services should be accepted when the incremental revenue equals the incremental costs.
A. True
B. False
Answer: False
Explanation:
The aim of the business is to ideally make a profit. As a result, Additional business should only be accepted if the incremental cost of doing so is less than the incremental revenue accrued from doing so.
If incremental revenue equals incremental cost, there is no point in engaging in the additional business as it brings no extra value to the business.
What is the annual real estate tax on a property valued at $135,000 and assessed for tax purposes at $47,250, with an equalization factor of 125%, when the tax rate is 25 mills
Answer:
$1,477
Explanation:
The annual real estate tax = assessed tax × equalization factor × tax rate
= $47,250 × 125% × 25 mills
= $47,250 × 125% × 2.5%(25 mills)
= $47,250 × 1.25 × 0.025
= $1,477
Blossom, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,700 from sales $201,000, variable costs $175,000, and fixed costs $30,700. If the Big Bart line is eliminated, $19,800 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) g
Answer:
Analysis of the Big Bart line discontinuity
Opportunity Costs :
Sales ($201,000)
Savings :
Variable Costs $175,000
Fixed Costs ($30,700 - $19,800) $10,900
Financial Advantage / (Disadvantage) ($15,100)
Conclusion :
Do not eliminate / discontinue Big Bart line.
Explanation:
The results show that closing Big Bart line results in a contribution towards fixed cost being lost to the amount of $15,100. Therefore leaving the entire company in a worse off position.
Storm in Bowl is a noodle manufacturer in Texas. It advertises the ingredients used for its product to convince customers that it is safe for consumption. The company has also slashed its prices to ensure affordability for low-income consumers. According to the VALS™ framework, Storm in Bowl is most likely targeting
Answer: Survivors
Explanation:
From the question, we are informed that Storm in Bowl is a noodle manufacturer in Texas and that it advertises the ingredients used for its product to convince customers that it is safe for consumption.
We are further told that the company has also slashed its prices to ensure affordability for low-income consumers. According to the VALS™ framework, Storm in Bowl is most likely targeting survivors.
The survivors are those with low income and have very few resources and are also loyal to a particular brand.
The most powerful of the five competitive forces is usually: Select one: a. The competitive pressures that stem from ready availability b. The competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage c. The competitive pressures associated with the potential entry of new competitors d. The bargaining power and leverage that large customers are able to exercise
Answer:
b. The competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage.
Explanation:
The Porter’s five forces of competition is a framework developed by Michael E. Porter in 1979, it is used to measure and analyze an organization's competitiveness in a business environment.
The Porter's five forces of competition framework are:
1. The bargaining power of suppliers.
2. The bargaining power of customers.
3. Threat posed by substitute products.
4. Threats posed by new entrants.
5. Threats posed by existing rivals in the industry.
The most powerful of the five competitive forces is usually the competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. When the amount of competitors (sellers), as well as the quantity of goods and services they provide are large, the lesser their competitive strengths or advantage in the market because the customers have a large pool of finished goods and services to choose from and vice-versa.
At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $9,250 Purchase season football tickets in September 160 Additional entertainment for each month 250 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 600 Pay for food each month 550 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 950Required:a. Prepare a cash budget for September, October, November, and December. b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?c. What are the budget implications for Craig Kovar?
Answer:
a) Craig Novar's
Cash budget
Months
Sept. Oct. Nov. Dec.
beginning balance 9,250 2,640 2,190 1,740
football tickets -160
other entertainment -250 -250 -250 -250
semester tuition -4,800
rent -600 -600 -600 -600
food -550 -550 -550 -550
apartment deposit -600 600
part time jobs earnings 950 950 950 950
ending balance 2,640 2,190 1,740 1,890
b) This is a static budget because it is being prepared in advance. A flexible budget adjusts a static budget to the real cash outflows and inflows.
c) Since Craig is spending more money than what he earns, his cash balance is decreasing month by month. This tendency changes in December because Craig gets his apartment's deposit back, but he still will not have enough money to pay for Spring tuition.
