Aladdin Jets is attempting to build an airplane that is made by welding the skin (outside layer) of the plane. The technique is much less expensive than an alternative riveting technology. The firm is also using a new type of jet engine with superior efficiency. The new entrant is entering a market that is realizing a substantial increase in competition. Which of the following would be strategies that the firm is attempting?
a. Cost reduction
b. Product differentiation
c. reduction in competitive intensity
d. a and b
e. all of the above.

Answers

Answer 1

Answer: Option D( a and b)

Explanation:

From the question, we are informed that Aladdin Jets wants to build an airplane that is made by welding the skin of the plane and that the technique is much less expensive than an alternative riveting technology.

We are further informed that the firm is also using a new type of jet engine with superior efficiency. The above analysis shows that the firm is using a product differentiation strategy and also reducing costs. While the company is trying out new things, it's also trying to minimize cost.


Related Questions

Per Unit Percent of Sales Selling price $ 115 100 % Variable expenses 69 60 Contribution margin $ 46 40 % Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. rev: 06_04_2020_QC_CS-205709, 06_18_2020_QC_CS-216765 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,800 and monthly sales increase by $17,250

Answers

Answer:

Net operating income will increase by $8,450 per month.

Explanation:

Prepare a Incremental analysis to reflect the impact of the new circumstances.

Incremental analysis

Incremental Sales                     $17,250

Less Incremental Fixed Cost   ($8,800)

Incremental Income                  $8,450

Conclusion :

Net operating income will increase by $8,450 per month.

"Pine Street Inc. makes unfinished bookcases that it sells for $57.10. Production costs are $37.94 variable and $10.50 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $72.02. Variable finishing costs are expected to be $7.14 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)"

Answers

Answer and Explanation:

The Preparation of analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases is prepared below:-

Particulars          Sell unfinished         Process further     Net income

                                                                                                      (loss)

Sales per unit      $57.10                        $72.02                     $14.92

Cost per unit

Variable                $37.94                    $45.08                        -$7.14  

                                                         ($37.94 + 7.14)

Fixed                   $10.5                         $10.5

Total                      $48.4                       $55.58                      $7.78

Net income per

unit                      $8.66                          $16.44                   $7.78

From the above calculation The bookcases to be sold and process further.

Trudy is Jocelyn's friend. Trudy looks after Jocelyn's four-year-old son during the day so Jocelyn can go to work. During the year, Jocelyn paid Trudy $4,090 to care for her son. What is the amount of Jocelyn's child and dependent care credit if her AGI for the year was $30,900

Answers

The answer is $34,990

Conduct online research on the taxes your state levies and compare them with federal tax rates.

Answers

Answer:

In new York federal tax rate is 22% and state tax rate is 6.21%

Explanation:

In New York there are four tax brackets staring from 3.078% on taxable income of $12,000 per annum.  Many states have income taxes but their rules may vary significantly. Federal taxes are progressive which mean higher rate of tax is applied on higher incomes. Some states may also have progressive income tax policies. There may also be a flat rate for everyone which means every individual has to pay same level of tax rate irrespective of their income.

Answer: in Illinois it’s 15% for Levies rather than 4.95% for federal tax rates.

Explanation:

B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 60 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $1.14 million. By going through research, the company will be able to better target potential customers and will increase the probability of success to 75 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $19.1 million. If unsuccessful, the present value payoff is only $6.1 million. The appropriate discount rate is 14 percent.

Required:
Calculate the NPV for the firm if it conducts customer segment research and if it goes to market immediately.

Answers

Answer:

NPV = $13.9m

NPV = $11.05m (if conducts customer segment research)

Explanation:

DATA

Successfull probability = 60%

Unsuccessful probability = 40%

Initial selling = $19.1m

Unsuccessful present value  = $6.1 m

Research cost = $1.14m

Discount rate = 14%

Solution ( NPV If the firm goes to market immediately)

NPV = (Successful probability x initial selling) + (Unsuccessful probability x Unsuccessful present value)

NPV = (60% x $19.1m) + ( 40% x $6.1 m)

NPV = $11.46m + $2.44m

NPV = $13.9m

Solution (NPV if the firm conducts customer segment research)

NPV = ((Successful probability x initial selling) + (Unsuccessful probability x Unsuccessful present value)/1+discount rate ) - research cost

NPV = [tex]\frac{13.9m}{1+0.14} - 1.14[/tex]

NPV = $12.19m - $1.14m

NPV = $11.05m

Note: We can calculate NPV if the firm conducts customer segment research by dividing NPV calculated above by (1+discount rate) and research cost is deducted from the whole.

When calculating a project’s net present value, which type of cash flows should be considered? Question 2 options: A) Free cash flows B) Net operating profit cash flows C) Operating cash flows D) External cash flows E) Alternative cash flows

Answers

Answer:

Operating cash flows

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV is a capital budgeting method used to determine profitable investments

For this discussion, you are to pretend that you're on a team project that's running behind schedule. Let's say you and your project team are three months into an eight-month project and you realize that you're already 2.5 weeks behind schedule and 15% over budget. What would you do?

Answers

Answer:

Explanation:

The discussion or focus is on PROJECT MANAGEMENT.

You are on a team project that is running behind schedule. You and your project team are 3 months into an 8-month project.

There is a deficiency in both time management and money management.

For the project to be 3 months old, out of 8 months, then it's already in the execution stage.

Being behind schedule by 2.5 weeks implies that you have spent 2.5 weeks extra, achieving what you ought to achieve without or before the extra time. Discuss with your project team and make them more active in delivering their tasks. Time is crucial. Time is money also.

You're 15% over budget, hence you've spent 15% more than you should. Check the vendors of items and tools used in the project. You might have to change them if their products are too costly. Ensure proper accounting also. Do not disburse funds without the consultation and approval of team members who are finance experts.

In all, not more than 2 days or thereabout should be used in making these adjustments because time and money are equally pertinent!

You are thinking of building a new machine that will sve you 2,000 in the first year the machine will then begin to wear out so that the savings decline at a rate of 4% per year forever. What is the present value of the savings if the interest rate is 5% per year? (Hint: this is a growing perpetuity.)

Answers

Answer:

The present value of the savings is $22222.22

Explanation:

A perpetuity is an indefinite series of equal payments made after equal intervals of time and for an unlimited period. A growing perpetuity is a kind of perpetuity whose period payments are not equal and they grow(or decline) at a constant rate each period for an indefinite period of time.

The formula for the present value of a growing perpetuity is attached.

The present value of the savings can be calculated as follows,

Present value = 2000 / (0.05 - (-0.04)

Present value = 2000 / (0.05 + 0.04)

Present value = 2000 / 0.09

Present value = $22222.22

What is the first step of the process of creating a new product?

A. Idea generation

B. Idea screening

C. Focus group testing

D. Business analysis

Answers

Answer:   A. Idea generation

Explanation:

The beginning fo creating a great product is to generate fantastic ideas.

Idea generation includes the stage of constructing through the idea, innovating the concept, developing the process, and the main thing is bringing the concept to reality.

Behind any product, the idea of creating it is the necessary step to show it in reality, without it a person cannot create a plan to construct a product.

Hence, the first step of the process of creating a new product is A. Idea generation .

Rest other 3 steps are after this.

Answer:

idea generation

Explanation:

1. Name several business etiquette guidelines that promote positive workplace conversations, in the office and at work-related social functions.
2. How can you ensure that your telephone calls on the job are productive? Name at least six suggestions.
3. List at least three guidelines that courteous cell phone users follow to avoid offending others.

Answers

Answer:

Please see explanations below

Explanation:

1.

• Ignore or avoid negative remarks when interacting with people either at work or anywhere.

• Give sincere and specific praise to people when they surpass your expectation.

• Always use correct names and titles when addressing people.

• Always choose appropriate topics when sending mails or when communicating.

• Recognize people for good work

• listen to learn in order to be better

2.

• Be smart, cheerful and accurate at all times

• One has to be professional and courteous at all times

• Avoid small or irrelevant talk that can waste too many time hence causes delay in hitting the point of making the call

• Always end the call with a tactful cue without the receiver being offended

• Summarize the points of the call in order to be sure everyone is satisfied with the discussion.

• Plan an agenda to handle calls in-order to know what one has to discuss

3.

• When in a face to face conversation, be sure you pay utmost attention or avoid having divided attention

• One should learn how to lower his or her voice when making calls openly

• Receiving calls when you are already engaged in a face to face conversation is disrespectful hence should not be imbibed.

"Which of the following statements are TRUE regarding the rights agent? I The rights agent usually handles the mechanics of a rights offering II The rights agent is usually the existing transfer agent of the issuer III The rights agent issues the additional shares upon presentation of the rights certificates with payment"

Answers

Answer:

I, II, and III

I The rights agent usually handles the mechanics of a rights offering

II The rights agent is usually the existing transfer agent of the issuer

III The rights agent issues the additional shares upon presentation of the rights certificates with payment

Explanation:

Aright is defined as an offering to existing shareholders to purchase more shares. Usually there is a proportion of original shares the shareholder can now purchase. For example 1 to 5 shares means the shareholder can buy one share for every 5 old shares owned.

A rights agent is a person or entity that is responsible for maintaining records on behalf of rights holders.

When rights are issued, a rights agent is handles sales to shareholders, he is usually the initial transfer agent for the issuing company, and he issues the additional shares when payment and rights certificates are presented.

You are interested in purchasing a new automobile that costs $ 38 comma 000. The dealership offers you a special financing rate of 12 % APR ​(1​%) per month for 48 months. Assuming that you do not make a down payment on the auto and you take the​ dealer's financing​ deal, then your monthly car payments would be closest​ to:

Answers

Answer:

$1,000.69

Explanation:

For computing the monthly car payment we need to apply the PMT formula i.e to be shown in the attachment below

Provided that

Present value = $38,000

Future value or Face value = $0

NPER = 48 months

RATE = 1%

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the monthly car payment is $1,000.69

Fern Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed expenses total $50,000 per year, and the company must sell 5,000 units to break even. If the company has a target profit of $15,500, sales in units must be:

Answers

Answer:

Sales unit to achieve target profit =6,550 units

Explanation:

Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.

The break-even point is calculated as  

Break -even in units = total general fixed cost/(selling price - variable cost)

ley represent tah variable cost per unit with letter "y"

5,000 = 50,000 / (25 - y)

cross multiply

5000× (25 - y) = 50,000

125000  - 5000 y = 50,000

collect like terms

125,000 - 50,000 = 5000 y

75000  = 5,000y

divide both sides by 5,000

y = 75,000/5000 = 15

Variable cost per unit = 15

Sales units to achieve target profit = Fixed cost + target profit/(selling price - variable cost per unit)

Sales unit to achieve target profit

= (50,000 + 15,500)/(25-15)

= 6,550

Sales unit to achieve target profit =6,550 units

Use the information for the​ question(s) below. Project A Project B Time 0 −​10,000 −​10,000 Time 1 ​5,000 ​4,000 Time 2 ​4,000 ​3,000 Time 3 ​3,000 ​10,000 If WiseGuy Inc. uses IRR rule to choose​ projects, which of the projects​ (Project A or Project​ B) will rank​ highest?

Answers

Answer:

PROJECT B

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator

For project A,

Cash flow in year 0 = -10,000

cash flow in year 1 = 5,000

cash flow i year 2 - 4,000

cash flow in year 3 = 3,000

IRR = 10.65%

For project B,

Cash flow in year 0 = -10,000

cash flow in year 1 = 4,000

cash flow i year 2 - 3,000

cash flow in year 3 = 10,000

IRR = 26.37%

Project B would be ranked higher because it has a higher IRR

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button

At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of $412,000. Gaur's management estimates that 8% of the accounts will prove uncollectible. What journal entry should Gaur record to establish an allowance for uncollectible accounts

Answers

Answer:

Dr bad debt 32,960

Cr Allowance for uncollectible account 32,960

Explanation:

Preparation of the journal entry that Gaur should record to establish an allowance for uncollectible accounts

Since we were told that he had gross accounts receivable of the amount of $412,000 in which 8% of the accounts will prove uncollectible this means the transaction will be recorded as:

Dr Bad debt 32,960

Cr Allowance for uncollectible account 32,960

($412,000×8%)

Flapjack Corporation had 7,600 actual direct labor hours at an actual rate of $12.41 per hour. Original production had been budgeted for 1,100 units, but only 950 units were actually produced. Labor standards were 7.0 hours per completed unit at a standard rate of $13.00 per hour. The direct labor time variance is

Answers

Answer:

-$12,350 Unfavorable

Explanation:

The computation of direct labor variance is shown below:

Labor time variance = (Standard hours - Actual hours) × standard rate

= (950 × 7.0 - 7,600) × $13

= (6,650 - 7,600) × $13

= -950 × $13

= -$12,350 Unfavorable

Therefore for computing the direct labor variance we simply applied the above formula by considering the given information

Great Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including​ Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $80 per passenger. Great ​Cruiseline's variable cost of providing the dinner is $40 per​ passenger, and the fixed cost of operating the vessels​ (depreciation, salaries, docking​ fees, and other​ expenses) is $240,000 per month. The​ company's relevant range extends to 13,000 monthly passengers. Use this information to compute the following:
A. What is the contribution margin per passenger?
B. What is the contribution margin ratio?
C. Use the unit contribution margin to project operating income if monthly sales total 10,000 passengers.
D. Use the contribution margin ratio to project operating income if monthly sales revenue totals $515,000.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $80

Unitary variable cost= $40

Fixed costs= $240,000

First, we need to calculate the unitary contribution margin and the contribution margin ratio:

Contribution margin= 80 - 40= $40

Contribution margin ratio= contribution margin/selling price

Contribution margin ratio= 40/80= 0.5

Now, we can calculate the operating income for 10,000 units:

Total contribution margin= 40*10,000= 400,000

Fixed costs= (240,000)

Net operating income= 160,000

Finally, the operating income for $515,000:

Net operating income= (contribution margin ratio*sales) - fixed costs

Net operating income= 515,000*0.5 - 240,000

Net operating income= 17,500

Talk to your mentor, family members, or relatives between the ages of 25-30 and who are employed to see what their budgets look like. Develop a sample budget for someone aged 25 to 30 years old

Answers

Answer:

Household budget for someone aged 25 to 30 is given below.

Explanation:

Income $1,200

Particulars       Budget Amount    Actual Expense    Difference

House Rent            $300                               $300             0

Utility Bills               $85                                 $93              -8

Groceries                $195                                $175             20

Clothing expense   $50                                 $78              -28

Entertainment         $20                                  $55             -35

Laundry                   $5                                    $6                 -1

Study material        $10                                   $25              -15

For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):

Sales $28,600
Food and packaging $9,710
Payroll 7,200
Occupancy (rent, depreciation, etc.) 6,630
General, selling, and administrative expenses 4,200
$27,740
Income from operations $860

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place)
b. What is McDonald's contribution margin ratio? Round to one decimal place.
c. How much would income from operation increase if the same-store sales increased by $900 million for the coming year, with NO change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place)

Answers

Answer:

a. What is McDonald's contribution margin?

contribution margin = total sales - total variable costs = $28,600 - [$9,710 + $7,200 + (0.4 x $4,200)] = $10,010

b. What is McDonald's contribution margin ratio?

contribution margin ratio = contribution margin / total sales = $10,010 / $28,600 = 0.35 ≈ 0.4

c. How much would income from operation increase if the same-store sales increased by $900 million for the coming year, with NO change in the contribution margin ratio or fixed costs?

increase in total contribution margin = $900 x 0.35 = $315

Income from operations will increase by $315 million

Moraine, Inc., has an issue of preferred stock outstanding that pays a 3.50 dividend in perpetuity. If this issue currently sells for 85 per share, what is the required return

Answers

Answer:

4.12%

Explanation:

Given that:

Payment of dividend per year = $3.50

Issue price of preferred stock = $85

(Note: Assumed that $85 is the face value of the preferred stock)

Hence, the formula for Required return = Dividend per year/ face value of the stock

= $3.5/ $85 = 0.0411764705

Then converting the answer to percentage, we have

0.0411764705 * 100% = 4.1764705

Therefore, the required return is = 4.12% (approximately)

You short 200 contracts of a call option on Stock XYZ. The contract multiplier is 100, i.e. each contract is on 100 shares of the stock.
In addition, you hold the following positions as of the end of previous trading day: 15,559 shares of the underlying stock; and $809,608 in debt.
The XYZ stock price is $51 right now. The risk-free interest rate is 4% per year. There are 252 trading days in a year.
Using the Black-Scholes model, you establish that the total delta of your option position is
-13,495
You adjust your hedge to bring your shareholding to match the new option delta. Which of the following is correct for your DEBT account, after you make the necessary adjustments?
a. $809,608 - (15,559 – 13,495)*51 = 704,344
b. $809,608e(0.04*1/252) + (15,559 – 13,495)*51 = 915,000
c. $809,608e(0.04*1/252) – (15,559 – 13,495)*51 = 703,932
d. $809,608 + (15,559 – 13,495)*51 = 914,872

Answers

Answer:

c. $809,608e(0.01*1/252) - (15,559 - 13,495) *51 = 703,932

Explanation:

Black Scholes Model is a mathematical model for pricing a contract of an option. It is best suited for dynamic financial market. The model determines the price of an option contract after incorporating the effects of volatility. In the given scenario there are 200 contracts of a call option. The trading days are 252 in the year and risk free interest rate is 4% prevailing in the market.

Which of the following provisions, if included in a mandatory arbitration agreement, would not likely render it unenforceable?
A. A provision that the employee pay the costs of the arbitrator’s services.
B. A provision that gives the employer the right to choose any arbitrator.
C. A provision that requires the employee to prove his case.
D. All of the above.

Answers

Answer:

C. a provision that requires the employee to prove his case.

Explanation:

Arbitration is a form of resolving dispute outside of the court system. Here, the parties involved agrees to have their dispute settled through a third party other than a judge. Mandatory arbitration is a provision that is included in a contract , which requires concerned parties to resolve their contract dispute before an arbitrator instead of the normal court system.

In a situation where one of the parties to a contractual agreement feels cheated or the other party has not performed his term of the agreement, such may seek redress through an arbitrator. For a mandatory arbitration to be enforceable, there must be a provision that the employee pay the cost of the arbitrator's service and also a provision that the employer has the right to choose any arbitrator.

Which of the following business combinations is a vertical integration? A. The corner gas station buys the competitor across the street and shuts them down to increase its own market share. B. The corner gas station and the competitor across the street agree to set their prices at the same level. C. The corner gas station acquires the gasoline distributor to ensure they can get gas in times of shortages. D. The corner gas station starts selling fireworks during December/January and June/July.

Answers

Answer:

  C. The corner gas station acquires the gasoline distributor to ensure they can get gas in times of shortages.

Explanation:

Vertical integration is the situation where the same company owns both the sources of supply and the distribution (retail) outlets. The description of (C) matches this definition.

WinterDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn a 16 % return on the​ company's $ 115 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts. WinterDreams projects fixed costs to be $ 35 comma 600 comma 000 for the ski season. The resort serves 800 comma 000 skiers and snowboarders each season. Variable costs are $ 8 per guest.​ Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices.

Required:
a. Would Mountain Point emphasize target pricing or cost-plus pricing? Why?
b. If other resorts in the area charge $66 per day, what price should Mount Snow charge?

Answers

Answer:

a. Would Mountain Point emphasize target pricing or cost-plus pricing? Why?

They emphasize cost plus pricing because the investors are seeking a desired rate of return on their investment and they do it by adding the desired profit margin to their costs.

b. If other resorts in the area charge $66 per day, what price should Mount Snow charge?

$75.50 in order for them to generate the required ROI. Since the resort has a very good reputation, it can charge a higher price than its competitors.

Explanation:

company's assets = $115,000,000

expected return on investment = 16%

fixed costs = $35,600,000

number of customers = 800,000

variable costs = $8 per customer x 800,000 = $6,400,000

total costs = $42,000,000

total cost per client = $42,000,000 / 800,000 = $52.50

desired profit = $115,000,000 x 16% = $18,400,000

desired profit per client = $18,400,000 / 800,000 = $23

price per ticket = $75.50

Estes Park, Inc., has declared a dividend of $6.70 per share. Suppose capital gains are not taxed, but dividends are taxed at 30 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $118 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be

Answers

Answer:

$113.31

Explanation:

Estees park has declared a dividend of $6.70 per share

The dividend is taxed at 30%

= 30/100

= 0.3

The company stock sells for $118 per share

The first step is to calculate the after tax dividend

After tax dividend= 6.70(1-0.3)

= 6.70×0.7

= $4.69

Therefore, the ex-dividend price can be calculated as follows

Ex-dividend price= $118-$4.69

= $113.31

Hence the ex-dividend price is $113.31

Rita Gonzales won the $53 million lottery. She is to receive $2.2 million a year for the next 20 years plus an additional lump sum payment of $9 million after 20 years. The discount rate is 12 percent. What is the current value of her winnings

Answers

Answer:

PV= $17,365,776.86

Explanation:

Giving the following information:

Cf= 2,200,000

Number of years= 20

Discount rate= 12%

Additional lump sum= 9,000,000

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000

FV= $167,515,373.4

Now, the present value:

PV= FV/(1+i)^n

PV= 167,515,373.4/1.12^20

PV= $17,365,776.86

4. (10 points). Prezas Company's balance sheet showed total current assets of $4,250, all of which were required in operations. Its current liabilities consisted of $975 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital

Answers

Answer: $3,025

Explanation:

The Net Working Capital is used to find out if the company is able to use its current assets to cater for it's Current Liabilities and as such is calculated by subtracting Current Assets from Current Liabilities.

= Current Assets - Current Liabilities

Current Liabilities = 975 + 250

= $1,225

The interest bearing funds are not included when Calculating Net Working Cap.

Net Working Capital = 4,250 - 1,225

= $3,025

Where in the CAFR would one find the long-term liability for revenue bonds (paid from the revenues of an enterprise fund)?
A. The proprietary funds Statement of Net Position only
B. The government-wide Statement of Net Position only
C. The government-wide Statement of Net Position and the proprietary funds Statement of Net Position
D. The government-wide Statement of Net Position and the RSI Schedule of Bonds Payable

Answers

Answer:

C. The government-wide Statement of Net Position and the proprietary funds Statement of Net Position

Explanation:

CAFR ( Comprehensive Annual Financial reporting ) is provides accurate, summarised, and meaningful information. There are three sections of this reporting as below.

IntroductionFinancialStatistical

In government-wide statement, The capital is reported on the net basis on financial statements.

Customer-Level Planning Circle K operates a number of convenience stores worldwide. Assume that an analysis of operating costs, customer sales, and customer patronage reveals the following:Fixed costs per store ............................................$80,000.00/year
Variable cost ratio...............................................0.80
Average sale per customer visit....................................$15.00
Average customer visits per week..................................1.75
Customers as portion of city population .............................0.04
Determine the city population required for a single Circle K to earn an annual profit of $40,000

Answers

Answer:

11,000 people

Explanation:

fixed costs per store $80,000

variable cost ratio 0.80

average sale per customer $15

average customer sales per week 1.75

customers as portion of population 4%

each customer shops 1.75 x 52 = 91 times per year

contribution margin per visit = $15 - ($15 x 0.8) = $3

contribution margin per client per year = $3 x 91 = $273

in order to make $40,000 in profits, you need at least:

($80,000 + $40,000) / $273 = 439.56 ≈ 440 customers

to determine the city's total population = 440 / 0.04 = 11,000

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Answer:

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