Answer:
Leadership is the action of leading people in an organization towards achieving goals. Leaders do this by influencing employee behaviors in several ways. A leader sets a clear vision for the organization, motivates employees, guides employees through the work process and builds morale.
Explanation:
Answer:
building consouis
Explanation:
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Managers are important members of the organization. Within an organization, there are managers at four levels: top, middle, first-line, and team leaders.
a. True
b. False
Answer:
The correct answer is the option B: False.
Explanation:
To begin with, the managers are one of the most important parts of the organization due to the fact that they have the task to plan, organize, direct and control the operations of the company. There are at least three levels in which the managers can go and have their work done, like the management area(high), the department areas(middle) and the operations area(low): However, that will depend on the organization and its size due to that an organization can only have managers at one level.
Bee Inc. is working on its cash budget for March. The budgeted beginning cash balance is $55,000. Budgeted cash receipts total $139,000 and budgeted cash disbursements total $134,000. The desired ending cash balance is $80,000. To attain its desired ending cash balance for March, the company needs to borrow:
Answer:
$20,000
Explanation:
The computation of the borrowed amount is shown below:
As we know that
Ending cash balance = beginning cash balance + cash receipts - cash disbursements + cash borrowings
$80,000 = $55,000 + $139,000 - $134,000 +cash borrowings
$80,000 = $194,000 - $134,000 + cash borrowings
So, the borrowing is $20,000
Jackie notices everyone wearing Converse sneakers on the first day of school. Ever the fashionista, this will likely affect: Multiple Choice Jackie's income, as she now needs to buy Converse and will have less to spend on other goods. Jackie's preferences for shoes, since she feels as though she needs them now. Jackie's expectations of future prices, since the price of Converse will likely go up because they're getting so popular. the prices of related goods, since other shoes will be less popular and cost less now.
Answer:
Jackie's income, as she now needs to buy Converse and will have less to spend on other goods.
Explanation:
Jackie is a fashionista and so she would respond to trends. Since everyone around her is wearing converse, she would want to wear converses too. so her income would be affected as it would be reduced as she would buy the converse.
A 5-year corporate bond yields 7.0%. A 5-year municipal bond (tax exempt bond) of equal risk yields 5.0%. Assume that the state tax rate is zero. At what federal tax rate are you indifferent between the two bonds?
Answer:
The tax rate is approximately(rounded to a whole) 29%
Explanation:
The federal tax that would make an investor indifferent between the 5-year corporate bond and the 5-year municipal bond can be derived by equating the return on the former to the taxable return of the latter as below:
5%=7%*(1-t)
where the t is the unknown tax rate
Note that the return on 5-year corporate bond is taxable while the return on the municipal bond is tax-free
5%=7%*(1-t)
5%/7%=1-t
0.7143 =1-t
t=1-0.7143
t=29%
Consider Figure 9.2 on page 205 of our textbook. Suppose P0 is $10 and P1 is $11. Suppose a new firm with the same LRAC curve as the incumbent tries to break into the market by selling 4,000 units of output. Estimate from the graph what the new firm's average cost of producing output would be. If the incumbent continues to produce 6,000 units, how much output would be supplied to the market by the two firms? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn ?
Answer:
The 10,000 units of output that will be supplied by the two firms to the market.
Profit that each firm would earn will be higher than previous.
Explanation:
The firm selling 4,000 units at the price of $10 per unit. If the output is increased to 6,000 units the price will increase to $11 per unit. If the new 6,000 units are produced along with the previous 4,000 units then the total output supplied by the two firms will be 10,000 units (6,000 + 4,000). The supply of goods in the market will increase so price will fall and the revenue for the firms will decline but they can benefit with sales volume and their profit can increase.
The 10,000 units of output will be supplied by the two firms to the market.
The profit that each firm would earn will be higher than the previous.
Calculation of the number of units and profits:Here the firm sells 4,000 units at the price of $10 per unit. And, in the case when the output is increased to 6,000 units the price will increase to $11 per unit.
And, In the case when the new 6,000 units are produced along with the previous 4,000 units so the total output supplied by the two firms will be 10,000 units.
The supply of goods in the market should increase due to which the price will fall and the revenue for the firms will decline however they can benefit with sales volume and their profit can increase.
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Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
Answer:
Sales tax payable FICA-social security taxes payable due in 40 days Portion of long term note due in 1 monthExplanation:
Current Liabilities refer to obligations owed in a 12 month period. Anything longer is classified as Long Term.
From the options listed the current liabilities will therefore be;
Sales Tax Payable which are the taxes that the government charges on goods and services and it is the responsibility of business to collect these and remit them to the Government on time. This is a current liability as these are remitted quite frequently.
The FICA social security taxes payable due in 40 days is also a current liability due its time period being less than a year.
A portion of a long term loan due in a month will be considered current also due to its time period.
Current liabilities for a company include Sales tax payable, FICA-social security taxes payable due in 40 days and portion of long term note due in 1 month.
What is the term Current Liability about?
Current Liabilities refer to obligations owed in a 12 month period. Anything longer is classified as Long Term.
Sales Tax Payable which are the taxes that the government charges on goods and services and it is the responsibility of business to collect these and remit them to the Government on time
The FICA social security taxes payable due in 40 days is also a current liability due its time period being less than a year.
A portion of a long term loan due in a month will be considered current also due to its time period.
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The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves determining whether the proposed diversification move Group of answer choices provides the company with additional resource strengths. provides additional ways to build the entrepreneurial skills of the company's senior managers. spreads stockholders' risks across a greater number of lines of business. has competitively valuable value chain match-ups with the company's present businesses such that its businesses can perform better together than apart. has good potential for increasing the company's rate of return on invested capital.
Answer: Has competitively valuable value chain match-ups with the company's present businesses such that its businesses can perform better together than apart.
Explanation:
The better-off test of diversification is that the company must gain a return that is higher than incremental growth. Incremental growth is usually defined a 1 + 1 = 2 formula and this test argues that Diversification must provide more than this such that the company achieves synergistic growth ( 1 + 1 = 3) which is what happens when different entities work better together than alone.
Diversification should therefore be into an area that will be able to match-up with the company's present businesses such that its businesses can perform better together than apart and produce even greater returns.
ent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The Deltas awarded Kent a $35,000 scholarship called "The Dean Wormer Double Secret Probation Memorial Scholarship". Kent pays the following amounts, out of his scholarship, to attend Faber College: Tuition - $26,000; Required lab fees - $300; Required books and supplies - $1,000; Room and board - $7,500. Part 1 of 6: Does the $26,000 of the scholarship that was paid for tuition have to be included in Flounder's taxable income for federal income tax purposes?
Answer:
Kent "Flounder" Dorfman
Scholarship from Delta Tau Chair Fraternity
The $26,000 will not be included in Flounder's taxable income for federal income tax purposes. It is a qualified scholarship expense. It is only the portion of $7,500 used for Room and board that is not a qualified scholarship expense.
Though it is required that the $35,000 be disclosed in form 1040. Qualified expenses like tuition, required lab fee, required books and supplies are tax-exempt, while Room and board and other non-required expenses are not qualified and therefore taxable.
Explanation:
S117(b)(2) of the IRS Code states the expenses that are qualified and tax-exempt if they are tuition-related.
When a qualified student, usually above 18 years and enrolled in post-secondary educational institution, receives a scholarship, the amount she uses to pay for tuition and other required expenses, which are generally payable by other students, are regarded as qualified expenses. Since they are qualified, they are also tax-exempt, meaning that taxes will not be paid on them, instead they will be deducted for tax purposes from the student's income. In the case of Kent, the tuition fee is not included in her taxable income for federal income tax purposes.
he financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $24,000 and is expected to produce cash inflows of $1,000 at the end of year 1, $5,000 at the end of years 2 and 3, $14,000 at the end of year 4, $9,000 at the end of year 5, and $7,000 at the end of year 6. a. Select the time line option that represents the cash flows associated with Starbuck Industries' proposed investment. b. Which of the approaches—future value or present value—do financial managers rely on most often for decision making? Why?
Answer:
Please check the attached image for the timeline image.
present value. this is because in making the decision of whether to carry out a project, the decision is made at the beginning of of the project and not in the future. so it is important to determine the present value to know if the project is profitable and should be carried out.
Explanation:
Timeline is arranges a series of events in chronological order. cash inflows are recorded as positive while cash outflows have a negative sign in front of the amount.
present value is the sum of discounted cash flows
Furniture costing $61,700 is sold at its book value in 2017. Acquisitions of furniture total $50,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture
Answer:
cash inflow = $32,100
Explanation:
there is some information missing:
accumulated depreciation 2016 (furniture) = $9,000depreciation expense 2017 (furniture) = $37,600accumulated depreciation 2017 (furniture) = $17,000we must first determine the book value of the furniture which was sold:
total depreciation related to the sold furniture = $9,000 + $37,600 - $17,000 = $29,600
book value = $61,700 - $29,600 = $32,100
since the furniture was sold at book value, then the cash inflow = $32,100
Cash inflow refers to money being received or earned by the company, while cash outflows refer to money being paid by the company.
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
ANSWER:
Take down his/her suggestions. The first thing is to show respect. Accept thoughts and contributions towards that project. Most times a project "sponsor" is not someone who is a professional in the field or discipline that the project is about.
If your direct supervisor has the idea of increasing the scope of the project, take note of his/her reasons and if they will truly bring the achievement of more departmental goals, then relay the idea of expansion to the project sponsor.
Answer:
At this point, the important thing is to remain calm and in control. Your supervisor, like everyone else, is likely to get confused and blame people for things that are not their fault, or even find fault that does not exist.
In that case, you should wait for him to finish speaking, ask for permission to speak and explain how you did your job and show how your supervisor is wrong about the conclusion he made. This must be done calmly and politely, always maintaining respect.
Explanation:
On July 1, 2021, a company loans one of its employees $20,000 and accepts a ten-month, 9% note receivable. Calculate the amount of interest revenue the company will recognize in 2021 and 2022
Answer:
Interest in 2021=900
Interest in 2022=600
Explanation:
Calculatation of the amount of interest revenue the company will recognize in 2021 2022
Month in 2021 - July To December
Interest in 2021 = 20,000*9%*6/12
Interest in 2021=900
Month in 2022 - January To April
Interest in 2022 = 20,000*9%*4/12
Interest in 2022=600
Therefore the amount of interest revenue the company will recognize in 2021 will be 900 while 2022 will be 600
Answer:
2021:900
2022:600
Explanation:
Month in 2021 - July To December
Interest in 2021 = 20,000x0.0%x(6/12)
Interest in 2021=900
Month in 2022 - January To April
Interest in 2022 = 20,000x0.09x(4/12)
Interest in 2022=600
Therefore the answer for 2021 will be 900 and for 2022 will be 600
Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. How much will the company pay in separation costs if each worker receives $5,000 when separated?
Answer:
$293,500
Explanation:
The computation of the amount pay in separation cost is shown below:
As there are 587 employees
but 10% are downsized
So, separation cost is
= Current employees × downsized percentage × received amount by workers
= 587 employees × 10% × $5,000
= $293,500
We simply applied the above formula so that the amount pay by the company with respect to the separation cost could arrive
The company estimates future uncollectible accounts. The company determines $14,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Record bad debts at the end of January.
Answer:
Bad debt expense = $4,690
Explanation:
Entry DEBIT CREDIT
Bad debt Expense $4,690
Allowance for doubtful debt $4,690
In Order to record bad debt expense, we need to go through some minor workings.
Workings
Receivables on January 31 past due = $14,000 x 30% = $4,200
Receivable not past due = ($14,000 x 70%) x5% = $490
Bad debt expense = Receivables on January 31 past due + Receivable not past due
Bad debt expense = $4,200 + $490
Bad debt expense = $4,690
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 26 $ 28 $ 32 B 500 31 27 34 C 900 19 18 24 D 900 23 20 22 E 800 30 28 29 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Answer:
A)
A 1,000 x $26.00 = $ 26,000
B 500 x $30.60 = $ 15,300
C 900 x $ 19.00 = $ 17,100
D 900 x $ 19.80 = $ 17,820
E 800 x $26.10 = $ 20,880
Total $ 97,100
B)
102,240
C)
Write-down at NRV 1,060 debit
Inventory 1,060 credit
Explanation:
We have to calculate the net realizable value(NRV) for each item and compare with the historic cost:
Units// Cost /// NRV
A 1,000 $ 26 $ 32(1 - 0.1) = 28.8
B 500 $ 31 $ 34(1-0.1) = 30.60
C 900 $ 19 $ 24(1-0.1) = 21.60
D 900 $ 23 $ 22(1-0.1) = 19.80
E 800 $ 30 $ 29(1-0.1) = 26.10
We will always pick the lowest to valuate the goods:
A 1,000 x $26.00 = $ 26,000
B 500 x $30.60 = $ 15,300
C 900 x $ 19.00 = $ 17,100
D 900 x $ 19.80 = $ 17,820
E 800 x $26.10 = $ 20,880
Total $ 97,100
Total Cost:
1,000 x 26
+ 500 x 31
+ 900 x 19
+ 900 x 23
+ 800 x 30
103,300
Total NRV
1,000 x 28.80
+ 500 x 30.60
+ 900 x 21.60
+ 900 x 19.80
+ 800 x 26.10
102,240
Comparing at the entire inventory level we get the following adjustment
103,300 - 102,240 = 1,060
The Bank of Bramblewood would like to increase its loans to customers, but it is currently mandated by a high reserve rate. As a Federal Reserve member bank, it will borrow additional funds from the Fed and charge its customers an interest rate that is higher than the ________________.
Answer: discount rate
Explanation:
It should be noted that the discount rate is the rate that is charged by the Federal Reserve when any of its member banks borrow money from it.
Therefore, Federal Reserve member bank, the Bank of Bramblewood will borrow additional funds from the Fed and charge its customers an interest rate that is higher than the discount rate.
Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times.
Required:
a. What percentage of time is Judy idle?
b. How much time, on average, does a student spend waiting in line?
c. How long is the (waiting) line on average?
d. What is the probability that an arriving student (just before entering the Administrative Services Office) will find at least one other student waiting in line?
Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $10,000 each year for tuition, $2,500 each year for textbooks, and $12,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $20,000 per year.
Assume that if you decided not to go to college, your parents would not let you live at home.
What is your opportunity cost for four years of college? $_______
Answer:
$130,000
Explanation:
Calculation for the opportunity cost for four years of college
The first step is to calculate for the cost of education per year
Using this formula
Cost of education per year =Tuition+Text book +Room and board
Let plug in the formula
Cost of education per year =$10,000+$2,500+$12,000
=$24,500
Second step is to calculate the return in a situation were we decided not to go to college
$20,000-$12,000=$8,000
The last step is to calculate for the opportunity cost for 4 years of college:
Using this formula
Opportunity cost =Cost of education per year+ Return * Numbers of year
Where,
Cost of education per year=$24,500
Return =$8,000
Numbers of years =4
Let plug in the Formula
Opportunity cost =($24,500+$8,000)*4
Opportunity cost =$32,500*4
Opportunity cost =$130,000
Therefore the opportunity cost for four years of college will be $130,000
A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 3.0 per minute. In serving themselves, customers take about 14 seconds, exponentially distributed. a. How many customers would you expect to see, on average, at the coffee urn? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer: 3 customers.
Explanation:
Given the following :
Arrival rate of customers = 3 customers per minute
Service time = 14 seconds
Then if service time is 14 seconds, the service rate per minute will be 60/14 = 4.29 = 4 (nearest whole number)
Service rate = 4 customers per minute.
Number of customers at coffee urn(Nc) :
Nc = (arrival rate) /(service rate - arrival rate)
Nc = (3) / (4 - 3)
Nc = 3 / 1
Nc = 3
Therefore, average number of customers expected at coffee urn = 3
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction house sold a sculpture at auction for a price of $10,371,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,497,500.
What was his annual rate of return on this sculpture? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Annual rate of return %
Answer:
-4.25%
Explanation:
purchase price in 1999 = $12,497,500
purchase price in 2003 = $10,371,500
annual rate of return = {[($10,371,500 - $12,497,500) / $12,497,500] / (2003 - 1999)} x 100 = (-0.170114 / 4) x 100 = -4.25%
the annual rate of return refers to how much money you win or loss with an investment during a year. In this case, the investor lost $2,126,000 in 4 years, which resulted in a total loss of 17.01% for the whole period.
Health and Wealth Company is financed entirely by common stock that is priced to offer a 12 percent expected return. If the company repurchases 20 percent of the common stock and substitutes an equal value of debt yielding 8 percent, what is the expected return on the common stock after refinancing
Answer: 13%
Explanation:
By substituting 20% of debt for debt yielding 8%, the company now has 20% financing from debt and 80% from equity.
The expected return on common stock after refinancing can be calculated by;
Return after refinancing = Return before refinancing + [tex]\frac{Debt}{Equity}[/tex](return before refinancing - Debt yield)
= 12% + [tex]\frac{0.2}{0.8} (0.12 - 0.08)[/tex]
= 13%
Blossom Company sells equipment on September 30, 2020, for $20,100 cash. The equipment originally cost $72,800 and as of January 1, 2020, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2020 is $5,45. Prepare the journal entries to (a) update depreciation to September 30, 2015, and (b) record the sale of the equipment.
Answer:
Date Account titles and explanation Debit Credit
30/09/2020 Depreciation expense $5,450
Accumulated depreciation $5,480
(To record depreciation expense)
30/09/2020 Accumulated depreciation $47,550
Cash $20,100
Loss on sale of equipment $5,230
Equipment $72,880
(To record sale of equipment)
A company's flexible budget for 13,200 units of production showed sales, $54,120; variable costs, $21,120; and fixed costs, $18,000. The operating income expected if the company produces and sells 19,600 units is:
Answer:
Net income= $31,000
Explanation:
Giving the following information:
Production= 13,200
Sales= 54,120
Variable costs= $21,120
Fixed costs= $18,000
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= total contribution margin/number of units
Unitary contribution margin= (54,120 - 21,120) / 13,200
Unitary contribution margin= $2.5
Now, for 19,600 units:
Total contribution margin= 2.5*19,600= 49,000
Fixed costs= (18,000)
Net income= 31,000
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.10 dividend every year, in perpetuity. If this issue currently sells for $80.65 per share, what is the required return?
Answer:
7.56%
Explanation:
Calculation for the required return for Smiling Elephant
Using this formula
Required return =D/P0
Where,
D=$6.10
P0=$80.65
Let plug in the formula
Required return =$6.10/$80.65
Required return =0.0756×100
Required return =7.56%
Therefore the Required return for Smiling Elephant Inc will be 7.56%
A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The management forecasts 2% growth in sales each month. Total July sales are anticipated to be:
Answer:
Budgeted sales July= $63,000
Explanation:
Giving the following information:
A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit.
To calculate the budgeted sales, we simply need to multiply the number of units sold for the selling price:
Budgeted sales July= 6,000*10.5= $63,000
Allowance for Doubtful Accounts has a debit balance of $441 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 3% of sales. If net credit sales are $903,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a.$26,649 b.$27,531 c.$27,090 d.$441
Answer: $27,090
Explanation:
From the question, we are informed that the allowance for doubtful accounts has a debit balance of $441 at the end of the year (before adjustment), and bad debt expense is estimated at 3% of sales and that the net credit sales are $903,000.
The amount of the adjusting entry to record the estimate of the uncollectible accounts will be 3% of $903,000. This will be:
= 3% × $903,000
= 3/100 × $903,000
= 0.03 × $903,000
= $27,090
Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments.
Semiannual Period-End Unamortized Discount Carrying Value
(0) January 1, issuance $13,466 $ 186,534
(1) June 30, first payment 11,782 188,218
(2) December 31, second payment 10,098 189,902
Answer: Incomplete question.
the complete queston is
Use the above straight-line bond amortization table and prepare journal entries for the following.
(a) The issuance of bonds on December 31, 2020.
b) The first interest payment on June 30, 2021.
(c) The second interest payment on December 31, 2021.
find answer in explanation column.
Explanation:
Semiannual Period-End Unamortized Discount Carrying Value
(0) January 1, issuance $13,466 $ 186,534
(1) June 30, first payment 11,782 188,218
(2) December 31, second payment 10,098 189,902
1. to record issue of bonds payable
Date Account Debit Credit
Dec 31,2020 Cash(carrying value) $ 186,534
Discount on bonds payable $13,466
Bonds payable $200,000
2. To record first interest payment
Date Account Debit Credit
june 30, 2021 Interest expense $7,684
discount on bonds payable $1, 684
Cash $6,000
Calculation =
Cash paid towards interest every semi annual period = $200,000 X 6% X1/2 =$6,000.
interest expense = cash paid + discount on bonds payable written off.
= $6000 + $1, 684 = $7,684
discount on bonds payable = unamortised discount on 31 dec - unamortised discount on 30th june) ($13,466 -11,782 ==$1,684)
3.To record second interest payment on december 31,2021.
Date Account Debit Credit
Dec. 31 ,2021 Interest expense $7,684
discount on bonds payable $1.684
Cash $6,000
Calculation
discount on bonds payable = unamortised discount on 30th june - unamortised discount on 31st december 2021 =11,782-10,098 = $1.684
If Piper Manufacturing manufactures one unique set of stack pipes, and the sell price is $121,000, the variable costs per unit are $62,000, and the fixed costs are $500,000, what is the break-even point in units
Answer:
8.47
Explanation:
The formula to calculate the break-even point in units is:
Break-even point in units=Fixed costs/(Selling price per unit-Variable cost per unit)
Fixed costs= $500.000
Selling price per unit= $121,000
Variable cost per unit= $62,000
Break-even point in units=$500,000/($121,000-$62,000)
Break-even point in units=$500,000/59,000
Break-even point in units=8.47
According to this, the break-even point in units is 8.47.
With an increase in product advertising of $50 million you expect to increase sales by 10,000 units. If unit grow margin is $4,800, will the additional advertising increase product contribution?
Answer:
Income will decrease by $2,000,000.
Explanation:
Giving the following information:
Advertising increase= $50,000,000
Units increase= 10,000 units
Unit contribution margin= $4,800
To calculate the total effect on income, we need to use the following formula:
Effect on income= total contribution margin - increase in fixed costs
Effect on income= 10,000*4,800 - 50,000,000
Effect on income= $2,000,000 decrease
Income will decrease by $2,000,000.
The Cell Inc., a microbiology research laboratory headquartered in the United States, has been losing money. The CEO decides to outsource some production to companies in developing countries. This decision to shift functions or processes to less developed countries is most likely due to their
Answer:
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The decision of the Ceo of Cell Inc. microbilogy research laboratory to outsource some production in developing countries so that maximum output and fast deliveries can be expected to customers and also by the company can focus on various other factors affecting the business.
What is a research laboratory?The scientific lab where the experiments or products research are made so that new products can be made or existing can be replaced in chemical biological or physical aspects.
What is outsourcing?The practice which is done by an individual or an organization by using third party to carry their business activities like performing tasks giving services to customers etc.
What is third party?The company or an individual which comes in between two aspects and try to manage or solve the issue or give solutions
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