Your sister is thinking about starting a new business. The company would require $300,000 of assets, and it would be financed entirely with common stock. She will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business

Answers

Answer 1

Answer: $40,500

Explanation:

The company would be expected to make a net income of 13.5% of the amount invested in assets.

ROE = Net income / Equity

Net income = ROE * Equity

Assets are the same as equity in this scenario because the company is entirely funded by equity.

= 13.5% * 300,000

= $40,500


Related Questions

Ashley received a raise at work that increased her monthly income from $1,000 to $1,250. Last year, Ashley bought 20 slices of cheesecake for her birthday party. Due to her increase in income, she is able to buy 24 slices for her birthday this year. Using the mid-point formula, the income elasticity is _________ and the cheesecake slices are __________ goods.

Answers

Answer:

0.8; normal

Explanation:

Ashley received a raise at work that increased her monthly income from $1,000 to $1,250. Last year, Ashley bought 20 slices of cheesecake for her birthday party. the income elasticity is 0.8 and the cheesecake slices are normal goods. This is further explained below.

What are goods?

Generally, goods are simply defined as objects to be carried, as opposed to passengers

In conclusion, Ashley bought 20 servings of cheesecake for her birthday celebration last year. The elasticity of income is 0.8, and the cheesecake slices are ordinary products.

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High-Low Method
The manufacturing costs of Ackerman Industries for the first three months of the year follow:
Total Costs Units Produced
January $1,900,000 20,000 units
February 2,250,000 27,000
March 2,400,000 30,000
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
a. Variable cost per unit $
b. Total fixed cost $

Answers

Answer:

Variable cost per unit= $50

Fixed costs= $900,000

Explanation:

Giving the following information:

Total Costs Units Produced

January $1,900,000 20,000 units

February 2,250,000 27,000

March 2,400,000 30,000

To calculate the unitary variable cost and the fixed cost under the high-low method, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (2,400,000 - 1,900,000) / (30,000 - 20,000)

Variable cost per unit= $50

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 2,400,000 - (50*30,000)

Fixed costs= $900,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 1,900,000 - (50*20,000)

Fixed costs= $900,000

Front Company had net income of $73,500 based on variable costing. Beginning and ending inventories were 900 units and 1,400 units, respectively. Assume the fixed overhead per unit was $7.95 for both the beginning and ending inventory. What is net income under absorption costing

Answers

Answer:

$77,475

Explanation:

Calculation to determine net income under absorption costing

Using this formula

Net income=Net income+(Ending inventories×fixed overhead per unit)- (Beginning Inventories × Fixed overhead per unit)

Let plug in the formula

Net income=$73,500 + (1,400 units x $7.95) - (900 x $7.95)

Net income=$73,500+$11,130-$7,155

Net income=$77,475

Therefore net income under absorption costing is $77,475

At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:

Direct materials $30
Direct labor 18
Fixed factory overhead 22
Variable factory overhead 14

Required:
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.

Answers

Answer and Explanation:

The computation of the cost of the finished goods inventory reported is as follows:

Absorption costing is

= ($30  + $18 + $22 + $14) × 21,500 units

= $1,806,000

And,

Variable costing is

= ($30 + $18 + 14) × 21,500

= $1,333,000

In this way the cost of the finished goods inventory should be determined

​Crawley, Inc. has a line of credit with HNC Bank that allows the company to borrow up to​ $800,000 at an interest rate of 12 percent.​ However, Crawley, Inc. must keep a compensating balance of 18 percent of any amount borrowed on deposit at the bank.​ Crawley, Inc. does not normally keep a cash balance account with HNC Bank. What is the effective annual cost of​ credit?

Answers

Answer: 14.63%

Explanation:

Based on the information given in the question, the effective annual cost of​ credit will be calculated as:

Effective annual cost of credit = [Interest rate/ (100 - Deposit Rate)] x 100

= [12 /(100 - 18)] x 100

= (12 / 82) × 100

= 0.1463 × 100

= 14.63%

The effective annual cost of​ credit is 14.63%.

tổ chức kiểm toán nội bộ cho hoạt động quản lý hàng tồn kho

Answers

Answer:

Hmmmmmmmm its động

Explanation:

Yw

Answer:

I don’t know

Explanation:

Universal Air is a no-growth firm and has two million shares outstanding. It expects to earn a constant $20 million per year on its assets. If it has no debt, all earnings are paid out as dividends, and the cost of capital is 10 percent, calculate the current price per share of the stock.

Answers

Answer:

$100/share

Explanation:

Calculation to determine the current price per share of the stock.

First step

EPS = DPS = $20,000,000/($20,000,000*10%)

EPS = DPS = $20,000,000/$2,000,000

EPS = DPS = $10 per share

Now let determine the current price per share of the stock

P0 = 10/0.10

P0= $100/share

Therefore current price per share of the stock is $100/share

Miller and Sons' static budget for 10,500 units of production includes $41,000 for direct materials, $50,300 for direct labor, variable utilities of $7,600, and supervisor salaries of $14,600. A flexible budget for 12,100 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. a.the same cost structure in total b.direct materials of $47,248, direct labor of $57,965, utilities of $8,758, and supervisor salaries of $14,600 c.direct materials of $47,248, direct labor of $57,965, utilities of $8,758, and supervisor salaries of $17,520 d.total variable costs of $113,500

Answers

Answer:

b.direct materials of $47,248

Direct labor=$57,965

Variable Utilities=8,758

Supervisor salaries $14,600

Explanation:

Computation of flexible budget

FLEXIBLE BUDGET

Direct materials

$41,000/10,500*12,100

Direct materials= $47,248

Direct labor=50,300/10500*12100

Direct labor=$57,965

Variable Utilities

=7600/10500*12100

Variable Utilities=8,758

Supervisor salaries $14,600 Fixed cost

The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year follow. The capital of the owner was $185,200 at April 1, the beginning of the current year. Mr. Thompson invested an additional $15,200 in the business during the year.

Accounts payable $1,200 Miscellaneous expense $470
Accounts receivable 9,860 Office expense 690
Cash 32,300 Supplies 1,670
Fees earned 82,110 Wages expense 34,330
Land 47,500 Drawing 5,400
Building 151,490

Required:
Prepare a statement of owner's equity for Thompson Computer Services for the current year ended March 31.

Answers

Answer:

Thompson Computer Services

Thompson Computer Services

Statement of Owner's Equity for the current year ended March 31

Capital, Thompson            $185,200

Additional investment           15,200

Total Capital, Thompson $200,400

Net income              46,620

Drawing                     5,400

Retained earnings             $41,220

Owner's Equity               $241,620

Explanation:

a) Data and Calculations:

Beginning balance:

Capital, Thompson            $185,200

Additional investment           15,200

Total Capital, Thompson $200,400  

Cash 32,300

Accounts receivable 9,860

Supplies 1,670  

Land 47,500  

Building 151,490

Accounts payable $1,200

Capital, Thompson 200,400

Drawing 5,400

Fees earned 82,110

Wages expense 34,330

Miscellaneous expense 470

Office expense 690

Fees earned              $82,110

Wages expense         34,330

Miscellaneous expense 470

Office expense              690

Total expenses      $35,490

Net income            $46,620

Drawing                     5,400

Retained earnings $41,220

Your only child will go to college 10 years from now. Your salary is $80,000 a year, and is expected to rise with inflation, which is about 3% annually. Tuition is currently about $40,000 a year, but growing by 5% yearly. What percentage of your salary would go to pay for the first year of your child's college education

Answers

Answer:

60.60%

Explanation:

The computation of the percentage of your salary would go to pay for the first year of your child's college education is given below:

The salary after 10 years would be

= 80000 × 1.03^10

= 107513.31.

Now Similarly, the college fees after 10 years would be

= 40000 × 1.05^10

= 65155.78.

So, the percentage would be

= 65155.78 ÷ 107513.31

= 60.60%

The ROI on sustainability efforts can be difficult to quantify because a. the payback period is on the same time frame. b. the payback period is on a different time frame. c. benefits from such projects are tangible. d. an excess of necessary data for accurate calculation is readily available.

Answers

Answer:

B)the payback period is on a different time frame.

Explanation:

Return on sustainability investment can be regarded as performance measure that is been utilized in evaluation of the gains which is produced due to result of corporate sustainability initiatives as regards amount of money that is invested in those initiatives.

Sustainable return on investment can be regarded as methodology used in identification as well as quantifying of environmental and societal, impacts of investment as regards a projects and initiatives.

It should be noted that The ROI on sustainability efforts can be difficult to quantify because the payback period is on a different time frame.

A campus deli serves 200 customers over its busy lunch period from 11:00 a.m. to 1:00 p.m. A quick count of the number of customers waiting in line and being served by the sandwich makers shows that an average of 10 customers are in process at any point in time. The average amount of time that a customer spends in process is _______ minutes (round to the nearest integer).

Answers

Answer: 2 hours

Explanation:

The agreement of the trial balance totals is an indication that all transactions have been properly recorded in the books of accounts. Do you agree with this statement?

Answers

Answer:

No

Explanation:

The trial balance shows the totals of all transactions that have been recorded. It has no way of knowing if there are additional transactions that have not been recorded.

Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $ 6.55
Direct labor $ 3.50
Variable manufacturing overhead $ 1.30
Fixed manufacturing overhead $ 3.00
Fixed selling expense $ 0.90
Fixed administrative expense $ 0.60
Sales commissions $ 0.70
Variable administrative expense $ 0.60
If 4,600 units are produced, the total amount of direct manufacturing cost incurred is closest to:____.
A) $63,560.
B) $16,800.
C) $87,640.
D) $80,360.

Answers

Answer:

the direct manufacturing cost is $46,230

Explanation:

The computation of the direct manufacturing cost is given below;

= (direct material per unit + direct labor per unit) × number of units produced

= ($6.55 + $3.50) × 4,600 units

= $46,230

hence, the direct manufacturing cost is $46,230

This is the answer but the same is not provided in the given options

The same should be considered

A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $120,000, and the following quantities of product and sales revenues were produced.
Product Pounds Price per Pound
Feed 100,000 $ 0.70
Flour 50,000 2.20
Starch 20,000 1.00
How much of the $120,000 cost should be allocated to flour if the value basis is used?
a) $24,500.
b) $84,000.
c) $66,000.
d) $70,000.
e) $200,000.

Answers

Answer:

c) $66,000.

Explanation:

The computation is shown below:

The value allocated is as follows:

Feed (100,000 × 0.7)=70,000

Flour (50,000 × 2.2)=110,000

Starch (20,000 × 1)=20,000

Total 200,000

Now allocation to the flour is

= (110,000 ÷ 200,000 × 120,000)

= $66,000

hence, the option c is correct

Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 24 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 980 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June:

Actual number of oil changes performed: 980
Actual number of direct labor hours worked: 386
Actual rate paid per direct labor hour: $14.50
Standard rate per direct labor hour: $14.00

Required:
a. Calculate total direct labor variance for oil changes in June?
b. Calculate The Direct Labor Rate Variance (LRV) and Direct Labor efficiency variance (LEV)

Answers

Answer:

that hurts my brain when I try to think of the answer

Berkeley Corporation has a policy of furnishing new automobiles to the athletic department of the local university. The automobiles are used for short periods of time by the extremely popular head basketball coach. When the automobiles are returned to Berkeley Corporation, they are sole to regular customers. The owner of Berkeley Corporation maintains that any such cars held for more than one year should qualify as Sec. 1231 property. Do you agree?

Answers

Answer:

Berkeley Corporation

No.  I do not agree with the owner of Berkeley Corporation.

Vehicles or automobiles are section 1245 property and not section 1231.

Explanation:

The IRS regards Section 1231 properties to include buildings, machinery, land, timber, and other natural resources, unharvested crops, cattle, livestock, and leaseholds that are held in a business or trade for at least one year.  They are used in trade and not for sale. On the other hand, Section 1245 properties include all depreciable or amortizable tangible personal property, such as furniture, automobiles, and equipment, or other intangible personal property, such as a patent or license.

Based on the information given, it's not section 1231. Therefore, I do not agree with the owner of Berkeley Corporation.

Section 1231 simply means a term that is used to describe a property relating to the United States Internal Revenue Code. Vehicles or automobiles are section 1245 property and not section 1231.

The Internal Revenue Service regards Section 1231 properties like buildings, machinery, land, timber, and other natural resources, unharvested crops, cattle, livestock, etc. Section 1245 represents properties that are depreciable like furniture, automobiles, equipment, etc.

Learn more about section 1231 on:

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When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt=rS, where r is the annual rate of interest.
a) Find the amount of money accrued at the end of 5 years when $6000 is deposited in a savings account drawing 534% annual interest compounded continuously. (Round your answer to the nearest cent.)
b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.)
c) Use a calculator to compare the amount obtained in part a) with the amount S=6000(1+14(0.0575))5(4) that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)

Answers

Answer:

See explanation

Explanation:

Given that;

A = P(1 + r/n)^nt

Where;

P= $6000

r = 5 3/4%

t = 5 years

n= 1

A = 6000(1 + 0.0575)^5

A= $ 7935

b) What time will A become $12,000

12000 = 6000(1 + 0.0575)^t

12000/6000 = (1 + 0.0575)^t

2 = (1 + 0.0575)^t

Take logarithm of both sides

log2 = t log(1 + 0.0575)

t= log2/log(1 + 0.0575)

t= 0.3010/0.0243

t = 12 years

c) when compounded quarterly;

S= 6000(1 + 1/4(0.0575))^(5)(4)

S= $7982

The amount when interest is compounded quarterly is higher than when it is compounded annually because the interest increases as the number of compounding periods increases.

A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 13%. The real
interest rate for the bank's profit margin is 10%.
The next year, unanticipated INFLATION has increased another 7%.
The new real interest rate is
and the
was hurt.
O 3%; lender
O 15%; lender
O 8%; borrower
O 3%; borrower
O 5%; lender
O 8%; lender

Answers

Answer:

The new real interest rate is 15%

and the lender was hurt.

O 15%; lender

Explanation:

a) Data and Calculations:

Fixed nominal interest rate = 13%

Real interest rate for the bank's profit margin = 10%

Inflation rate = 3% (13% - 10%)

Unanticipated inflation rate = 7%

Nominal interest rate = 17% (10% + 7%)

But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.

Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $500,000 of direct costs but also 20% of the Maintenance Department (M) cost and a Maintenance Department that includes not only $250,000 of direct costs but also 40% of the Janitorial Department? (Hint: This equation is derived from the two separate equations representing each department's costs.)

Answers

a. J = ($500,000 × 0.20) + [($250,000 × 0.20) + J]

b. J = $500,000 – (0.20 × $250,000) – (0.20 × J)

c. J = $500,000 + [(0.20 ÷ $250,000) + (0.40 ÷ J)]

d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}

Answer:

The equation that represents the algebraic expressions for the two equations needed to capture the total costs of the Janitorial Department is:

d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}

Explanation:

a) Data and Calculations:

                                                 Direct costs   Percent of Service Dept.

Janitorial Department (J)          $500,000          20% of M

Maintenance Department (M)  $250,000          40% of J

b) The reciprocal services method reapportions the costs of the service departments to other service departments using a system of simultaneous equations.  With its complications, the reciprocal method is the most accurate and equitable method for apportioning service departments' costs to production departments.

TB MC Qu. 08-104 Marlow Company purchased a point of... Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the first year of its useful life using the double-declining-balance method

Answers

Answer:

$680

Explanation:

Calculation to determine What would be the depreciation expense for the first year of its useful life using the double-declining-balance method

Depreciation expense=3400*(100%/10 * 2)

Depreciation expense=3400*.2

Depreciation expense= 680

Therefore What would be the depreciation expense for the first year of its useful life using the double-declining-balance method is $680

The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1 (35% completed) 5,000 units Completed units during June 64,500 units Ending inventory (63% complete) 4,400 units What is the number of material equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process?
a. 4,400 units
b. 59,500 units
c. 68,900 units
d. 63,900 units

Answers

Answer:

d. 63,900 units

Explanation:

Particulars                                     Unit

Beginning inventory                        -

Units started and completed      59,500 [64,500 - 5,000]

Closing WIP for materials            4,400

Equivalent units for materials   63,900

So, the number of material equivalent units of production in the June 30, Finishing Department inventory is 63,900 units

Daphne Inc., a steel manufacturing company, is planning to buy a new plant at $1,090,000. The life of the plant is estimated to be 5 years and has cash flows of $109,000, $218,000, $327,000, $436,000, and $545,000. Calculate the payback period for the new plant.
a. 5 years
b. 2 years
c. 4 years
d. 3 years

Answers

Answer:

The payback period is exactly 4 years.

Explanation:

Giving the following information:

Initial investment= $1,090,000

Cf1= 109,000

Cf2= 218,000

Cf3= 327,000

Cf4= 436,000

Cf5= 545,000

The payback period is the time required to cover the initial investment:

Year 1= 109,000 - 1,090,000= -981,000

Year 2= 218,000 - 981,000= -763,000

Year 3= 327,000 - 763,000= 436,000

Year 4= 436,000 - 436,000= 0

The payback period is exactly 4 years.

A portfolio manager believes interest rates will drop and decides to sell short-duration bonds and buy long-duration bonds. This is an example of _____________ swap.

a. a pure yield pickup
b. a substitution
c. a rate anticipation
d. an intermarket spread

Answers

Answer:

C) a rate anticipation

Explanation:

A rate anticipation swap can be regarded as a bond trading strategy that is used whereby there is exchange of exchanges of bond portfolio by trader in anticipation of expected interest rate movements.

Rate anticipation swap can be regarded as trading strategy involving

bonds swapping on the basis of varying maturity dates. this bond swapping are done according to their present period as well as their movement rate prediction.

The strategy underlying price discrimination is Group of answer choices to charge higher prices to customers who have good substitutes available to them and lower prices to customers without many substitutes available to them.. to charge everyone the same price but limit the quantity they are allowed to buy. to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand. to reduce per-unit cost by charging higher prices to those with the most inelastic demand and lower prices to those with the most elastic demand.

Answers

Answer:

to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students  

Requirements to practice successful price discrimination  

1. The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers

2. The firm must have different elasticities of demand for their product in different markets. the firm should charge the higher price in the market with the less elastic demand.

3. The firm must be able to segment the market for their products  

4. the firm's product should have a lot of close substitutes.

Which of the following describe management's use of a master budget: Multiple select question. Helps in determining bonuses to managers who meet budgets Helps analyze differences between actual and budgeted results Helps to place blame on managers who do not meet budgets Helps reveal undesirable outcomes Helps in planning and control activities

Answers

Answer:

Helps analyze differences between actual and budgeted results

Helps reveal undesirable outcomes

Helps in planning and control activities

Explanation:

A master budget comprised of future income statement or planned operating budget and the future balance sheet or financial budget that represent the goals and objectives of the organization and the ways to achieve them. It identified the actual & budgeted results difference, It disclosed the non-desirable results and also it helps in activities that deals in planning & controlling

Therefore the above statements should be correct

Entry for Jobs Completed; Cost of Unfinished Jobs
The following account appears in the ledger prior to recognizing the jobs completed in August:
Work in Process
Balance, August 1 $8,920
Direct materials 72,520
Direct labor 78,230
Factory overhead 41,120
Jobs finished during August are summarized as follows:
Job 210 $36,140
Job 216 22,090
Job 224 42,170
Job 230 78,310
a. Journalize the entry to record the jobs completed.
b. Determine the cost of the unfinished jobs at August 31.
$

Answers

Answer:

a. Journal Entry to record the jobs completed:

Debit Finished Goods Inventory $178,710

Credit Work in Process $178,710

To record the jobs completed.

b. The cost of the unfinished jobs at August 31 is:

= $23,080

Explanation:

a) Data and Analysis:

Work in Process

Account Titles        Debit      Credit

Balance, August 1  $8,920

Direct materials     72,520

Direct labor            78,230

Factory overhead   41,120

Finished goods inventory   $178,710

Balance (unfinished jobs)     23,080

Total                  $201,790 $201,790

Jobs finished during August are summarized as follows:

Job 210  $36,140

Job 216   22,090

Job 224   42,170

Job 230   78,310

Total     $178,710

a. Journal Entry Analysis to record the jobs completed:

Finished Goods Inventory $178,710 Work in Process $178,710

b. The cost of the unfinished jobs at August 31 is:

= Total of work in process Minus Finished Goods

= $201,790 - $178,710

= $23,080

Bow-Wow Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market which would not affect its present sales. If the company has sufficient (excess) capacity to produce the additional units, acceptance of the special order would affect net income as follows:

a. Income would decrease by $4,000.
b. Income would increase by $4,000.
c. Income would increase by $70,000.
d. Income would increase by $20,000.

Answers

20,000 dollars at least could be it

In addition to cost, what factors should be considered in selecting a building contractor? What can go wrong if the lowest bid is selected and nothing else is considered?

Answers

Answer:

The proper answer about what the question asked is explained below.

Explanation:

To begin with, when it comes to the construction area there are a lot of factors to consider at the time of selecting a building constructor. It is not just about the cost, but most importantly of all about the level of quality and recognition the constructor has in its business area. As well as the knowledge that will come all in the same package because the person that is in charge of constructing a building must be a professional in that. So eventhough the cost is important for the business the quality of the service hired is further more important. That is because in the case the lowest bid is selected and it turns out that it is not a very good one then future trouble can come with that decision, like piping problems or gas problems or structures problems, etc. And that will not only led to more future expenses but also to possible damage to some lives.

Using the Chipotle example we have discussed in class imagine that all employees are paid $15/hour, the grill costs $300, and each cash register costs $200. All other utensils and items come at zero cost. Applying the principles of business process improvement that we have discussed in class, what is the lowest cost Chipotle can achieve with the highest flow rate

Answers

Answer:

The correct answer will be "$620".

Explanation:

It is important to note that certain principles are involved in the process of streamlining business processes, including:

Interpersonal skills of the organizational leaders.Client focus entirely, defined objectives, accuracy, and so on., are encouraged.

The lowest cost will be:

= [tex](15\times 8)+300+200[/tex]

= [tex]120+300+200[/tex]

= [tex]620[/tex] ($)

Chipotle can achieve the lowest cost of $ 620 with the highest flow rate. Thus, the correct answer would be "$ 620".

What are the principles of business process improvement?

Collect User Information (UX), Customer Information (CX), and Organizational Change Management.Do not think that a change in technology will change your processes.Improve and renovate.End-to-end continuous improvement.

The lowest cost can be achieved:

[tex]= (15\times8)+ \$200 + \$300\\\\= \$620[/tex]

Thus, the correct answer is $620, which is the lowest cost chipotle can achieve with the highest flow rate.

To learn more about business process improvement, refer to the link:

https://brainly.com/question/1276995

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