Answer:
MHI and Deloitte Survey
Cost Reduction #1 Priority
True
Explanation:
For supply chain companies to achieve their profit targets, they need to curtail costs. Consumers are not ready to absorb much costs as they are presented with low-priced alternatives. The competition for customers among supply chain organizations is very high. Everyone competes for the dollar the consumer is willing to spend on goods. With property and advertising costs skyrocketing, careful management of the cost structure is required.
A disadvantage of using stock options to compensate managers is that:________
A) it encourages managers to undertake projects that will increase stock price.
B) it encourages managers to engage in empire building.
C) it can create an incentive for managers to manipulate information to prop up a stock price temporarily, giving them a chance to cash out before the price returns to a level reflective of the firm's true prospects.
D) All of the above
Answer:
C) it can create an incentive for managers to manipulate information to prop up a stock price temporarily, giving them a chance to cash out before the price returns to a level reflective of the firm's true prospects
Explanation:
A disadvantage of using stock options to compensate managers is that it can create an incentive for managers to manipulate information to prop up a stock price temporarily, giving them a chance to cash out before the price returns to a level reflective of the firm's true prospects.
A stock option is a contractual agreement that gives a buyer (investor) the right but certainly not an obligation to buy or sell a stock at a specified price and date, depending on the options' form. Generally, in business finance there are basically two (2) types of options;
1. Puts: it is a bet that a stock will likely fall in the short or long run.
2. Calls: it involves betting that a stock will rise in the short run or long run.
Hence, if managers are compensated with a stock option it gives them the opportunity to cash out early.
Surrey Store gets its products directly from the manufacturer and sells them to consumers. In this case, the manufacturer is a
Answer:
Wholesaler
Explanation:
A Wholesaler supplies Retailers (Surrey Store) with merchandise. Retailers sell this Merchandise to the final customer in retail shops.
One characteristics of the Wholesaler is that it offers trade or bulky discount to Retailers for purchasing in huge quantities.
Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often make their way into nearby rivers and streams, and are very harmful to fish and other wildlife. If cotton farmers do not have to pay for the environmental damage caused by the pesticides used to grow cotton, then the market equilibrium price will be ______ and the market equilibrium quantity will be
Answer: C. inefficiently low; inefficiently high
Explanation:
If the cotton farmers are not made to pay for the damage that their pesticides cost then they will maintain production at a relatively high level because their input costs will be relatively low. As a result of this high level of production, the price of the goods will be relatively low as well. The point at which both market equilibrium quantity and price are at in this scenario are considered inefficient because they are not taking into account, the true cost of production being the effects of the pesticides being used.
However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.
A company discarded a computer system originally purchased for $18,000. The accumulated depreciation was $17,200. The company should recognize a(an):
Answer:
The company should recognize a $800 loss.
Explanation:
Depreciation is the loss of value of an asset over its useful life, and because of the accrual principle, this depreciation is matched, as an expense, with the revenues that the asset produces in a specific period of time.
In this case, the company has expensed $17,200 over the computer system useful life. When the computer system was finally discarded, $800, representing the difference between the accumulated depreciation and the original cost of the system, where not expensed. For this reason, this $800 have to be recognized as a loss.
One measure of ____ is the extent to which the work of the department affects the final output of the organization.
Answer:
Centrality
Explanation:
Remember, a less central organization means more freedom. However, when the work of the departments in an organization can adversely affects the final output of the organization it tells us how central the organization is.
This Implies that the organization is following a structured system in which flexibility is not possible, and as a result any issues at other departments might affect output.
The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 12,000 ________ 16,000 Sales revenues $600,000 $ $800,000 Variable costs 240,000 $ ________ 322,240 Contribution margin $360,000 $ $477,760 Fixed costs 275,100 $ ________ 269,700 Operating profit $84,900 $ ________ $208,060 The flexible budget will report ________ for variable costs.
Answer:
The flexible budget will report $ 320,000 for variable costs.
Explanation:
Great Cabinets Company
Actual Results Flexible Budget Static Budget
Sales volume (in units) 12,000 ________ 16,000
Sales revenues $600,000 $ $ 800,000
Variable costs 240,000 $ ________ 322,240
Contribution margin $360,000 $ $477,760
Fixed costs 275,100 $ ________ 269,700
Operating profit $84,900 $ ________ $208,060
The flexible budget will report ________ $ 320,000 for variable costs.
For 16000 units the Flexible Budget would be
Sales Revenue ($600,000 /12000)16000 =$ 800,000
Variable Costs (240,000 /12000)16000 = $ 320,000
Contribution Margin $ 480,000
Fixed Costs 275,100 ( assuming fixed costs to be same
for 16000 units)
Operating Profit 204,900
Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run. For example, an increase in the money supply, a _____________ variable, will cause the price level, a __________ variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a _____________ variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as___________________.
Answer:
nominal; nominal; real; the classical dichotomy.
Explanation:
Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run. For example, an increase in the money supply, a nominal variable, will cause the price level, a nominal variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a real variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as the classical dichotomy.
A nominal variable is the monetary value of a security such as bonds or stocks, without considering any change in price caused by inflation. It is also referred to as the par value or face value.
A real variable measures goods and services taking into consideration any change in price or that has been adjusted for inflation so as to allow comparison of goods with respect to another goods or services.
Hence, if the money supply is increased, it will cause an increase in the price of goods and services but will have no effect on the gross domestic product (GDP), which is known as the classical dichotomy.
Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products.The highest acceptable transfer price for the divisions is the Small Components Division's
Answer:
Minimum Transfer Price.
Explanation:
The price that is acceptable by Small Components Division when transferring to the internal division must cover the variable manufacturing cost (less internal savings) plus opportunity cost incurred.
This price is known as the Minimum Transfer Price for the Transferring Division (Small Components Division) and would never accept a transfer with any price lower than this.
A customer is long 400 shares of fully paid XYZ stock, valued at $150 per share. The customer sells "short against the box" another 400 shares of XYZ. XYZ is listed on the New York Stock Exchange. The minimum maintenance margin requirement is:
Answer:
$3,000.
Explanation:
Given that, the margin in an arbitrage account is 5% minimum maintenance on the long side under FINRA rules.
Also, in this case, there is no Regulation T requirement, since the customer has no risk, which means hs net position = "0."
Therefore, given that, the market value of the securities is $150 * 400 = $60,000
Then, the minimum margin which is 5% = $3,000.
Additionally, the customer can borrow the remaining $57,000.
Hence, the right answer is $3,000
Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1000,20 years to maturity, and a coupon rate of 6.6 percent paid annually.
If the yield to maturity is 8.9 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Price of bond = $786.86
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond would be worked out as follows:
Step 1
Calculate the PV of interest payments
Annual interest payment
= 6.6% × 1,000× 1/2= 33
PV of interest payment = A ×(1- (1+r)^(-n))/r
r- semi-annual yield = 8.9%/2 = 4.45 %
n- 20× 2= 40
PV of interest payment= 33 × (1-(1.0445^(-40)/0.0445 = 611.611
Step 2
PV of redemption Value
PV = RV × (1+r)^(-n)
PV = 1,000 × (1.0445)^(-40) = 175.25
Step 3
Price of bond
Price of bond= 611.611 + 175.25 = 786.862
Price of bond = $786.86
In the short run, what would indicate that a perfectly competitive firm is producing an output for which it is receiving a normal profit?
Answer: Price = Average Cost
Explanation:
I'm unsure if this question has options but this is the most probable reasons a firm in a Perfectly Competitive market would be receiving a normal profit in the Short run.
Normal Profit means that the company is making an Economic Profit of $0. For this to happen, the firm must need to be making the same.amount as it is spending on the goods that it is producing.
The amount it is spending is the Average Cost. When Price equals this Average Cost, the company is at Break-Even Point and so is making a $0 Economic profit which means it is only making Normal Profit.
For a company to make Economic Profit, the Price needs to be equal to the Marginal Cost.
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%
A "tariff" on imported products is an example of a trade barrier that is always preferred to the free trade, because it generates government revenues in addition to restricting the amounts of imports.
A. True
B. False
Answer:
The answer is true
Explanation:
One of the most common trade barriers is a tariff. Tariff is a tax imposed by the government on imported goods and services. Imposing tariffs on imported goods and services raise their prices.
Imposing tariff on imported goods can either be done to raise government revenue or to protect indigenous companies.
Brendan is a manager in a chocolate factory. His team works on an assembly line; workers fill boxes that come at a fixed rate of speed. The workers can easily see whether the boxes are filled correctly. Brendan schedules a team meeting to celebrate packing the millionth box.
Brendan’s_______leadership behavior is likely to be______, because_______, ______this leadership behavior.
Answer: people oriented; effective; automatic feedback; has no effect on.
Explanation:
For a people-oriented leader, success is achieved by building a lasting relationships with ones workers. For this leader, even though the tasks are vital, he or she believes that the work culture is more vital.
Based on the analysis in the question,
Brendan’s people oriented leadership behavior is likely to be effective because automatic feedback will have no impact on this leadership behavior.
Global Corporation had 50,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27. The entry to record the dividend declaration is:
Answer:
Please see answer below
Explanation:
The entry to record the dividend declaration is as shown below;
Retained earning A/c Dr (50,000 shares × $27 per share × 10%) = $135,000
To common stock dividend distributed ( 50,000 shares × $20 per share × 10%) = $100,000
To paid-in-capital in excess of par value common stock (50,000 shares × $7 per share × 10%) = $35,000
(Being dividend that is declared)
Listed below are accounts that appear in financial statements.
Required: Identify the financial statement(s) in which each of the following three accounts would be found. Note: An account may appear in more than one financial statement.
Balance sheet Income statement statement of changes
in retained earning
Dividends
Deffered Revenue
Service Revenue
Answer:
Dividends - Statement of Changes in Retained Earning
Dividends are payments to shareholders from a company's net income. They are derived from the Statement of Changes in Retained Earning because this is where Net Income is sent to. After they are deducted from Retained Earnings, the Earnings form part of Equity.
Differed Revenue - Balance Sheet
Differed Revenue refers to money that was received from a customer or client for goods and/or services that have not yet been delivered. The business will treat them as a liability until they are delivered so they will go under Current Liabilities in the Balance Sheet assuming they are to be fulfilled in 12 months or less which is usually the case.
Service Revenue - Income Statement
These are revenue that the business earns for providing a service when their main source of revenue is by selling goods. It is listed in the Income Statement just after Revenue and is added to Revenue to get Total Revenue.
Data concerning Farm Corporation's single product appear below: Selling price per unit $ 320.00 Variable expense per unit $ 76.80 Fixed expense per month $ 170,240 The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$224,000
Explanation:
Contribution margin = Selling price - Variable cost
= $320 - $76.8
= $243.2
Contribution margin ratio = Contribution margin / Sales
= $243.2 / $320
= $0.76 × 100
= 76%
Break even point = Fixed cost / Contribution margin ratio
= $170,240 / 76%
= $224,000
whipple corp. just issued 310,000 bonds with a coupon rate of 6.20 percent paid semiannually that mature in 15 years. The bonds have a YTM of 6.64 percent and have a par valueof 2000. how money was raised from the sale of the bonds?
Answer:
$594,338,200 was raised from the sale of the bonds.
Explanation:
The Price of the bond (PV) can be determined using a financial calculator as follows :
Pmt = ($2,000 × 6.20 %) / 2 = $62
P/yr = 2
n = 15 × 2 = 30
YTM = 6.64 %
FV = $2,000
PV = ?
Therefore, PV = $1,917.22
Money raised = 310,000 bonds × $1,917.22
= $594,338,200
The actual usage for grain depends on which llamas show up at feeding time, thus there is an average need for 50 pounds of grain each day with a standard deviation of five pounds. In addition, there is some variability in how long it takes the feed store to whip up a batch of llama feed. The standard deviation of the feed prep is one day. The farm is willing to tolerate a 2% chance of running out of feed before they can get some more hauled in. Which adjustment to their system would have the greatest impact on the reorder point? A. increase the standard deviation of daily demand to 10 pounds O B. reduce the average daily demand to 45 pounds O c. lower the standard deviation of the lead time to one half of a day OD. decrease the service level to 90
Answer:
The adjustment to system that would have the greatest impact on the reorder point is:
c. lower the standard deviation of the lead time to one half of a day.
Explanation:
Other listed options discussed issues not affecting the reorder point. It is the lead time that impacts the reorder point and directly affects the total inventory levels. The lead time sums the time occasioned by supply delay or how long the shipment of an order takes to reach the warehouse to the reordering delay or the time it takes to place an order after receiving the requisition or attaining the reorder point.
Beckett, Inc., has no debt outstanding and a total market value of $200,000. Earnings before interest and taxes, EBIT, are projected to be $30,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 20 percent lower. Beckett is considering a debt issue of $75,000 with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,000 shares outstanding. Ignore taxes for this problem.
a-1.
Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)
EPS
Recession $
Normal $
Expansion $
a-2.
Calculate the percentage changes in EPS when the economy expands or enters a recession. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers as a percent.)
Percentage changes in EPS
Recession %
Expansion %
b-1.
Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)
EPS
Recession $
Normal $
Expansion $
b-2.
Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)
Percentage changes in EPS
Recession %
Expansion %
Answer:
Beckett, Inc.
Earnings Per Share:
a-1. Earnings Per Share:
Economic Conditions Normal Expansion Recession
Earnings before interest and taxes = $30,000 $35,400 $24,000
Earnings per share:
Recession = $24,000/8,000 $3.00
Normal = $30,000/8,000 $3.75
Expansion = $35,400/8,000 $4.43
a-2. Percentage changes in EPS:
Recession = -$0.75/$3.75 x 100 = -20%
Expansion = $0.68/$3.75 x 100 = 18.13%
b-1. EPS after recapitalization:
Economic Conditions Normal Expansion Recession
Earnings before interest and taxes = $30,000 $35,400 $24,000
Interest at 8% $8,000 $8,000 $8,000
Earnings after interest $22,000 $27,400 $16,000
Earnings per share:
Recession = $16,000/8,000 $2.00
Normal = $22,000/8,000 $2.75
Expansion = $27,400/8,000 $3.43
b-2. Percentage changes in EPS:
Recession: -$0.75/$2.75 x 100 = -27.27%
Expansion: $0.68/$2.75 x 100 = 24.73%
Explanation:
1. Data:
Market Value = $200,000
Economic Conditions Normal Expansion Recession
Earnings before interest and taxes = $30,000 $35,400 $24,000
Issue of debt for $75,000 with 8% interest
Proceeds to repurchase shares of stock.
Outstanding shares = 8,000
Ignore taxes
8 points eBook HintPrintReferences Check my work Check My Work button is now enabledItem 4Item 4 8 points The following information is from Amos Company for the year ended December 31, 2019. Retained earnings at December 31, 2018 (before discovery of error), $852,000. Cash dividends declared and paid during the year, $13,000. Two years ago, it forgot to record depreciation expense of $44,600 (net of tax benefit). The company earned $219,000 in net income this year. Prepare a statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Amos Company
Statement of Retained Earnings for the year ended December 31, 2019:
December 31, 2018 balance $852,000
adjustment of error:
Depreciation expense for 2017 -44,600
Adjusted Retained Earnings $807,400
Income for the year 219,000
less Dividends -13,000
Retained Earnings, Dec. 31, 2019 $1,013,400
Explanation:
The depreciation expense of $44,600 would be recorded by deducting it from the beginning retained earnings. This adjusts the balance to reflect the previous year's errors. Then the year's earnings are added before the payment of dividends. The resultant figure is the retained earnings to be carried to the next accounting period.
A break-even analysis includes operating expenses and total monthly debt payments,
plus
school costs
gross profit margin.
Onet profit margin
zero term margin.
Answer: Gross profit margin.
Explanation:
Break-Even Analysis enables a business to know how much cash it has under given situations by helping it know how much sales it needs in order to have a certain amount of cash.
It is calculated by the formula;
(Operating Expenses + Annual Debt Service)/Gross Profit Margin = Break-Even Sales
Operating Expenses in this equation is net of Depreciation as depreciation is a non-cash expense.
AgCo sells corn in a perfectly competitive market. Say the current market price for a bushel of corn is $4.00. If AgCo prices at $4.10 per bushel for its corn, a. AgCo will sell less corn than other producers but still earn a reasonable profit. b. AgCo will sell no bushels of corn. c. AgCo's total revenue will increase. d. AgCo will maximize profit at that price.
Answer:
b. AgCo will sell no bushels of corn.
Explanation:
A perfectly competitive market refers to market has many buyers and sellers will all the market selling the undifferentiated product without any difference.
Some of the others attributes of a perfectly competitive market are that buyers and sellers have perfect information about the price of a good, no barriers to entry and exit, similar products are being sold, there are free entry and exit to the market, and all sellers are price takers.
All sellers are price takers implies that the price of good is determined or given by the market. Therefore, any attempt to increase the price beyond the price given by the market will result into a zero sale because the buyers will immediately switch to another seller selling at the market price which lower.
Based on the above explanation, AgCo will sell no bushels of corn because its prices at $4.10 per bushel for its corn is higher than the current market price for a bushel of corn of $4.00.
Suppose that the quantity of apples sold increases by 30 percent after the price of pears increases by 15 percent. What is the coefficient of cross elasticity of demand
For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $92,500 and $3,300, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $416,000 and $420,000, respectively, and $4,140 in accounts receivable were written off. Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021, is: Multiple Choice $7,340. $5,300. $3,320. $4,160.
Answer:
c. $3,320
Explanation:
Calculating Rahal's final balance of allowance for doubtful balance
Beginning balance $3,300
Bad debt expense (420,000*1%) $4,200
Less: Written off -$4,140
Ending balance $3,360
Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021 is $3,360
Olu’s African Sculptures is preparing their budgeted financial statements for the coming year, and has accumulated the following data: Beginning-of-period balances: Cash: $65,000 Accounts Receivable: $40,000 Raw Materials Inventory: $30,000 Work in Process Inventory: $150,000 Finished Goods Inventory: $30,000 Equipment (historical value): $275,000 Accumulated Depreciation: $125,000 Accounts Payable: $45,000 Estimates for end-of-period balances: Accounts Receivable: $20,000 Raw Materials Inventory: $12,500 Work in Process Inventory: $90,000 Finished Goods Inventory: $8,000 Accumulated Depreciation: $115,000 Accounts Payable: $27,000 Budgeted activity levels for the period: Sales (# units at a sales price of $205/unit): 20,000 units Purchases of Direct Materials: $290,000 Direct Labor Wages: $170,000 Manufacturing Overhead: $210,000 Selling and Administrative Expenses: $775,000 What is the budgeted cash received from customers? Select one: a. $4,100,000 b. $4,120,000 c. $4,220,000 d. $4,320,000 PreviousSave AnswersNext
Answer:
What is the budgeted cash received from customers?
b. $4,120,000Explanation:
cash received from customers = total sales revenue + beginning accounts receivable - ending accounts receivable
total sales revenue = 20,000 x 205 = $4,100,000beginning accounts receivable = $40,000ending accounts receivable = $20,000cash received from customers = $4,100,000 + $40,000 - $20,000 = $4,120,000
Oriole Co. sold $1,970,000 of 12%, 10-year bonds at 102 on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on July 1 and January 1. If Oriole uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2017, and December 31, 2017. (Round answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded\
Answer:
The interest expenses to be reported for July 1, 2017 and December 31, 2017 is $116,230
Explanation:
We begin by calculating cash interest on the bond
Cash interest on the bond = $1,970,000 × 12% × 6/12
= $118,200
We will also find the premium on bonds payable
Premium on bonds payable = (102 -100)
= 2%
Therefore, premium on bonds payable = $1,970,000 × 2%
= $39,400
Finding semi annual premium amortized for both July 1, 2017 and December 31 is ;
= $39,400 / 10×2
= $39,400 / 20
= $1,970
We will now calculate the interest expenses for July 1, 2017 and December 31
Interest expenses = Cash interest - Premium amortized
= $118,200 - $1,970
= $116,230
George Company has a relevant range of 150,000 units to 400,000 units. The company has total fixed costs of $527,000. Total fixed and variable costs are $622,500 at a production level of 176,000 units. The variable cost per unit at 350,000 units is
Answer: $0.54
Explanation:
Total cost = Fixed cost + Variable cost
$622,500 = $527,000 + Variable cost
Variable cost = $622,500 - $527,000
Variable cost = $95,500
Variable cost per unit will be calculated as the variable cost divided by the production unit. This will be:
= $95,500/176,000
= $0.54
The variable cost per units is $0.54.
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: White divisionGrey division Sales (net)$270,000 $540,000 Salary expense37,800 64,800 Cost of goods sold135,000 202,500 The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Gross profit for the White and Grey Divisions is: WhiteGrey A.$97,200 $272,700 B.$232,200 $475,200 C.$135,000 $337,500 D.$72,200 $247,700 E.$97,200 $247,700
Answer:
White Division Gross Profit = $72,200
Grey Division Gross Profit = $247,700
Explanation:
White Division Grey division
Sales (net) $270,000 $540,000
Less: Cost of goods sold $135,000 $202,500
Gross Margin $135,000 $337,500
Less: Salary Expenses $37,800 $64,800
Rent $25,000 $25,000
Gross Profit $72,200 $247,700
The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Hence, the rent expenses will be shared equally. Rent = $50,000 hence, both division will pay $25,000 each for rent
A firm has found that it provides a 90 percent order fill rate (orders shipped complete), 90 percent on-time delivery, 90 percent of its orders arrive at customers' destinations in perfect condition, and 90 percent of the time all documentation is correct. These are all of the elements of a perfect order for this company's customers. What is the best estimate of its perfect order performance?
Answer:
66%
Explanation:
The Best estimate of the order's perfect performance is the probability that all four factors contribute as desired.
The probability of this happening is
= (0.9) × 4
= 0.6561
or
= 66%
Simply we multiplied the four factors with the given percentage so that the best estimate of the perfect order performance could arrive