The characteristic that B2C customers do not have is b. Few burning needs.In the business-to-consumer (B2C) context, the central problem is delighting the consumer.
B2C customers typically have many choices when it comes to products or services, as there is usually a wide range of options available in the consumer market. Additionally, B2C customers are not characterized by conservatism about change; they are often open to trying new things and embracing innovative solutions. However, B2C customers do not typically have few burning needs, as they are driven by their desires and preferences for various products and services. Understanding and addressing these needs is crucial for businesses operating in the B2C sector.
In the business-to-consumer (B2C) context, the central problem is delighting the consumer. This means that businesses need to focus on creating products, services, and experiences that satisfy and exceed the expectations of their target consumers. By offering a wide range of choices, embracing change and innovation, and addressing the burning needs of consumers, businesses can effectively delight their B2C customers and gain a competitive advantage in the market.
To know more about buisness visit:
https://brainly.com/question/24553900
#SPJ11
A shop that sells candles offers a scented candle, which has a monthly demand of 560 boxes. Currently, the shop purchases the candels from a supplier and the EOQ is 154. Candles can also be produced at the store at a rate of 43 boxes per day. Assume, for the both the scenarios (purchasing or production) holding cost is the same and production setup cost is euqal to the ordering cost. The shop operates 20 days a month. Determine the optimal production run quantity: a. 442 b. 261 c. 54 d. 91 e. Insufficient information
The optimal production run quantity is 91. So, the correct option is d.
EOQ formula: EOQ = sqrt((2DS) / H)
Where D is the demand, S is the cost of placing one order, and H is the holding cost per unit per time period.
The optimal production run quantity can be calculated using the given information as follows:
EOQ = 154
D = 560 boxes/month
S = cost of placing one order
H = holding cost per unit per time period
Number of working days in a month = 20
Working hours per day = 8
Production rate = 43 boxes/day = 860 boxes/month
Therefore, the formula for the total cost of production is given by:
The total cost of production = Cost of manufacturing + Setup cost + Holding cost
Cost of manufacturing = 860 x 5 = $4,300 (since 43 boxes can be produced per day, and each box costs $5 to manufacture)
Setup cost = Cost of placing one order = $650
Holding cost = (H x C) / 2
Where C is the average inventory level.
The optimal inventory level is EOQ / 2, and since the shop operates 20 days a month, the average inventory level can be calculated as follows:
Average inventory level = EOQ / 2 = 77 units
Cost of holding one unit = $2.75
Holding cost = (2.75 x 77) / 2 = $105.88
The total cost of production = $4,300 + $650 + $105.88 = $5,055.88
The optimal production run quantity is 77 boxes, which is closest to option (d) 91.
Learn more about production at https://brainly.com/question/14293417
#SPJ11
Assume a credit card balance of $18,000 that carries a 16% annual interest rate. The minimum required monthly payment is 3% of the outstanding balance or $30, whichever is greatest. Calculate the balance after the first payment.
if credit card balance of $18,000 that carries a 16% annual interest rate. The minimum required monthly payment is 3% of the outstanding balance or $30, whichever is greatest then After the first payment, the credit card balance will be $17,742.
To calculate the balance after the first payment, we need to determine the minimum payment required and subtract it from the outstanding balance. The minimum required monthly payment is 3% of the outstanding balance or $30, whichever is greater.
In this case, 3% of $18,000 is $540. However, since $540 is greater than $30, the minimum payment required is $540. Subtracting this payment from the outstanding balance gives us:
$18,000 - $540 = $17,460
Therefore, after the first payment, the credit card balance will be $17,460.
Learn more about Credit card balance
brainly.com/question/31829525
#SPJ11
‘Organic Paradise’ is a local shop that advertises that they sell vegetables fresh from their own farm and that all produce sold is 100% organic. The shop is immensely popular among the customers who love healthy eating even though they pay higher prices, they still buy them because they are ‘Fresh and Organic’.
However, a disgruntled employee of the shop informed the Australian Competition and Consumer Commission (ACCC) that many produce sold is neither ‘fresh’ nor ‘organic’ as claimed. Upon an investigation by the ACCC, it is revealed that almost 30% of the fruits are frozen before being sold. They also find that chemical fertilizers were used for certain types of vegetables and pesticides as well.
Required: Identify and explain the most relevant provision(s) of the Australian Consumer Law that ACCC will rely on to take an action against the shop? In your answer discuss at least one relevant case.
The ACCC can take action against Organic Paradise under Section 18 of the ACL for engaging in misleading conduct.
The most relevant provision of the Australian Consumer Law (ACL) that the ACCC will rely on to take action against the shop is Section 18, which prohibits misleading or deceptive conduct. This provision states that a person must not, in trade or commerce, engage in conduct that is likely to mislead or deceive. By advertising their produce as "fresh and organic" when a significant portion is actually frozen and treated with chemical fertilizers and pesticides, Organic Paradise is engaging in misleading conduct.
One relevant case that demonstrates the application of Section 18 is Australian Competition and Consumer Commission v. Coles Supermarkets Australia Pty Ltd [2014] FCA 634. In this case, Coles was found to have engaged in misleading and deceptive conduct by making false or misleading representations about the nature of its bread products. Coles had advertised its bread as "Baked Today, Sold Today," when in fact some of the bread had been partially baked and then frozen before being finished in store. The Federal Court held that Coles' conduct was likely to mislead or deceive consumers, and therefore, it contravened Section 18 of the ACL. The case highlights the importance of accurate representation in advertising and the consequences for engaging in misleading conduct.
In the case of Organic Paradise, the ACCC can rely on Section 18 to argue that the shop's advertising claiming their produce as "fresh and organic" is likely to mislead or deceive consumers. By selling frozen fruits and using chemical fertilizers and pesticides, the shop is not delivering on its claims, and consumers are being misled into purchasing products that do not meet their expectations. The ACCC can take legal action against Organic Paradise based on this provision to seek remedies such as injunctions, penalties, and compensation for affected consumers.
To learn more about consumer click here
brainly.com/question/32653980
#SPJ11
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 -$ 27,600 1 11,600 2 14,600 3 10,600 What is the NP
The NPV is greater than zero, the project should be accepted. This means that the net profit of the project is positive.
The NPV of the project can be calculated using the given cash flows. NPV stands for net present value and is used to calculate the net profit of the project. The formula for NPV is given by: NPV = Present value of cash inflows - Present value of cash outflows where Present value = Future value / (1 + r)n Given data: Year 0: -$27,600 Year 1: $11,600 Year 2: $14,600 Year 3: $10,600
The cash flow in year 0 is a cash outflow and hence its present value will be negative. The present value of the cash outflow is calculated as follows: Present value of cash outflow = $27,600 / (1 + r)0 = $27,600
The cash flows in years 1, 2, and 3 are cash inflows and hence their present value will be positive.
The present value of the cash inflows is calculated as follows: Present value of cash inflow in year 1 = $11,600 / (1 + r)1
Present value of cash inflow in year 2 = $14,600 / (1 + r)2
Present value of cash inflow in year 3 = $10,600 / (1 + r)3
Adding the present value of cash inflows and the present value of cash outflows, we get: NPV = $11,600 / (1 + r)1 + $14,600 / (1 + r)2 + $10,600 / (1 + r)3 - $27,600. Now, the firm evaluates all its projects using NPV decision rule, i.e., if the NPV is greater than zero, the project should be accepted. If the NPV is less than zero, the project should be rejected. If the NPV is equal to zero, the firm is indifferent to the project. Net profit is the difference between the present value of cash inflows and the present value of cash outflows. If the NPV is positive, it means that the present value of cash inflows is greater than the present value of cash outflows.
In other words, the net profit is positive. If the NPV is negative, it means that the present value of cash outflows is greater than the present value of cash inflows. In other words, the net profit is negative. If the NPV is zero, it means that the present value of cash inflows is equal to the present value of cash outflows. In other words, the net profit is zero.
Now, we need to find the value of r such that the NPV of the project is zero. NPV = $11,600 / (1 + r)1 + $14,600 / (1 + r)2 + $10,600 / (1 + r)3 - $27,6000 = $11,600 / (1 + r)1 + $14,600 / (1 + r)2 + $10,600 / (1 + r)3 - $27,600Solving for r using a financial calculator or spreadsheet software, we get: r = 9.45%Therefore, the NPV of the project is: NPV = $11,600 / (1 + 0.0945)1 + $14,600 / (1 + 0.0945)2 + $10,600 / (1 + 0.0945)3 - $27,600NPV = $2,252.33. Since the NPV is greater than zero, the project should be accepted. This means that the net profit of the project is positive.
To know more about net profit: https://brainly.com/question/4177260
#SPJ11
Behaviour modification does NOT consider: O a. employee attitudes towards the person reinforcing the behaviour. O b. the effect of feedback on behaviour. O c. c. changes in employee behaviour when the reinforcer is removed. O d. employee behaviour before the behaviour modification strategy is applied. O e. the types of actions that reinforce behaviour.
Behaviour modification does NOT consider a. employee attitudes towards the person reinforcing the behavior.
Behavior modification is a psychological approach that focuses on changing and reinforcing specific behaviors through the use of positive and negative consequences. It typically involves identifying target behaviors, implementing strategies to modify those behaviors, and evaluating the effectiveness of the intervention.
While behavior modification takes into account various factors related to behavior change, such as the effect of feedback, changes in behavior when reinforcement is removed, employee behavior before the strategy is applied, and the types of actions that reinforce behavior, it does not necessarily consider employee attitudes towards the person reinforcing the behavior.
Employee attitudes towards the person reinforcing the behavior may influence the effectiveness of behavior modification strategies, but they are not directly included or considered as a core component of the approach itself.
So option A is the correct answer
To know more about behaviour modification click on below link :
https://brainly.com/question/12530159#
#SPJ11
A valve manufacturer plans to produce 28586 units of a special valve next year. The production rate is 110 valves per day, am is 73 valves per day. The setup cost is $ 47 per run and the holding costs are $4 per unit per year. If the company producing decides to allow backorders at a backorder cost of $3 per unit, what would be the optimum number of runs per year from the backorder?
To find the optimum number of runs per year from the backorder, we need to consider the trade-off between setup costs, holding costs, and backorder costs, the optimum number of runs per year from the backorder would be 0 runs.
First, let's calculate the production time required to produce 28586 units. We divide the total units by the production rate:
28586 units / 110 valves per day = 259.87 days
Since the production time is less than a year, we can assume that all units will be produced within the year.
Next, let's calculate the total setup costs. We multiply the number of runs by the setup cost:
Total setup costs = Number of runs per year * Setup cost per run
To determine the number of runs per year, we divide the total units by the AM (average production per day):
Number of runs per year = Total units / AM
Number of runs per year = 28586 units / 73 valves per day ≈ 391.70 runs
Total setup costs = 391.70 runs * $47 per run
= $18,374.90
Now, let's calculate the total holding costs. We multiply the number of units by the holding cost per unit per year:
Total holding costs = Total units * Holding cost per unit per year
Total holding costs = 28586 units * $4 per unit per year
= $114,344.00
Finally, let's calculate the total backorder costs. We multiply the number of backordered units by the backorder cost per unit:
Total backorder costs = Total backordered units * Backorder cost per unit
Since we want to find the optimum number of runs from the backorder, we need to find the number of units that would be backordered. To do this, we subtract the total units produced from the demand:
Total backordered units = Total demand - Total units produced
Total backordered units = 28586 units - 28586 units
= 0 units
Total backorder costs = 0 units * $3 per unit
= $0.00
To determine the optimum number of runs per year from the backorder, we compare the total costs (setup costs + holding costs + backorder costs) for different scenarios.
Since the backorder cost is $0.00, the optimum number of runs per year from the backorder would be 0 runs.
To know more about backorder visit :
brainly.com/question/19594763
#SPJ11
Integrated marketing communications programs that do not contain specific objectives:
Group of answer choices
will often have too many benchmark measures against which the success or failure of their programs will be assessed.
will never be successful.
may find it difficult to facilitate coordination of the efforts of various groups working on a promotional campaign since the various groups will not understand what goal they are working toward.
will be able to save money since the firm won’t spend too much time worrying about what they are trying to do.
will be more successful than for companies that develop IMC programs with specific objectives.
Integrated marketing communications programs that do not contain specific objectives may find it difficult to facilitate the coordination of efforts among different groups working on a promotional campaign since the goals are unclear. This lack of clarity can hinder the effectiveness of the campaign and make it challenging to assess success or failure. Option b is correct.
Integrated marketing communications (IMC) programs that do not have specific objectives can face several challenges. Without clear objectives, it becomes difficult to align the efforts of various groups working on a promotional campaign. Each group may have its own interpretation of what needs to be achieved, leading to miscommunication and inefficiencies. This lack of coordination can result in a disjointed and inconsistent message reaching the target audience, undermining the effectiveness of the campaign.
Furthermore, without specific objectives, it becomes challenging to measure the success or failure of the IMC program. Objectives serve as benchmarks against which the outcomes can be evaluated. Without them, it becomes difficult to determine if the program has met its goals or if adjustments need to be made. This lack of clarity also makes it harder to allocate resources effectively and make informed decisions regarding the allocation of budget and efforts.
Contrary to the provided option, IMC programs without specific objectives are not likely to be more successful or cost-effective. Clear objectives provide direction, focus, and a shared understanding of what needs to be achieved.
They help guide decision-making, shape strategies, and ensure that resources are utilized efficiently. Without objectives, there is a higher risk of wasted resources, missed opportunities, and inconsistent messaging, ultimately hindering the overall effectiveness of the IMC program.
Option b is correct.
Learn more about Integrated marketing: https://brainly.com/question/9696745
#SPJ11
Integrated marketing communications programs without specific objectives may result in coordination difficulties and a lack of measurable success.
Explanation:Integrated marketing communications (IMC) programs that do not contain specific objectives may find it difficult to facilitate coordination of the efforts of various groups working on a promotional campaign since the various groups will not understand what goal they are working toward. This can result in a lack of synergy and cohesion in the campaign. Additionally, without specific objectives, it is challenging to measure the success or failure of the program as there are no benchmark measures to assess against. It is important for companies to develop IMC programs with specific objectives to ensure clarity, coordination, and effective evaluation of their promotional efforts.
Learn more about Integrated marketing communications programs here:https://brainly.com/question/33538444
#SPJ11
Chapter 10 Homework (GRADED) subunit of Zoom Sports Manufacturing Company had the following financial results last month Click the icon to view the financial results) irements Complete the performance evaluation report for this subunit Based on the data presented, what type of responsibility center is the subunit? Which items should be investigated if part of the management's decision criteria is to investigate all variances exceeding $2,600 or 10.5%7 Should only unfavorable variances be investigated? Explain materials labor ut labor tes irement 1. Complete the performance evaluation report for this subunit (Enter the variances as positive numbers. Round the variance perce orable (U) if the variance is 0, make sure to enter in a "0". A variance of zero is considered favorable) Product preciation Dairs and maintenance a Actual 1 26.925 14,235 29.275 13,170 15,500 6.315 105.420 S Budgeted S Question 6, E10-18A (similar to) Part 1 of 5 25,000 15,000 25,000 12.000 15,500 7,500 100,000 Variance (U or F) CD Data table 1 2 3 HW Score: 12.5%, 1 of 8 points O Points: 0 of 3 4 Zoom Sports Manufacturing Company-Surfing Apparel Subunit Monthly Performance Report For the Month 5 Direct materials 6 Direct labor 7 direct labor & Utilities 9 Depreciation Repairs and 10 maintenance Variance Actual Budgeted Variance Percentage $26.925 $ 25,000 15,000 25.000 12.000- $5.500 14,235 29.275 13,170 15.600 6,315 7.500 11 Total $ 105,420 $ 100.000
The subunit of Zoom Sports Manufacturing Company is a cost center based on the provided financial results. A cost center is responsible for controlling costs and does not generate revenue directly. The subunit's performance evaluation report can be completed by calculating the variances for materials, labor, and variable overhead.
For materials, the actual cost is $26,925, which is $925 unfavorable compared to the budgeted cost of $26,000. The labor variance is $14,235 actual cost compared to the budgeted cost of $15,000, resulting in a favorable variance of $765. Lastly, the variable overhead variance is $29,275 actual cost compared to the budgeted cost of $25,000, resulting in an unfavorable variance of $4,275.
To determine which items should be investigated based on the management's decision criteria, we need to identify variances exceeding $2,600 or 10.5%. In this case, the variable overhead variance of $4,275 exceeds both thresholds. Therefore, the variable overhead variance should be investigated.
It is not necessary to investigate only unfavorable variances. Both favorable and unfavorable variances should be investigated to understand the underlying causes and identify areas for improvement. Favorable variances can provide insights into efficient operations or cost-saving measures, while unfavorable variances highlight areas where corrective actions may be needed. By investigating all variances, management can gain a comprehensive understanding of the subunit's performance and make informed decisions to enhance efficiency and effectiveness.
In summary, the subunit of Zoom Sports Manufacturing Company is a cost center. The performance evaluation report includes variances for materials, labor, and variable overhead. The variable overhead variance should be investigated as it exceeds the specified thresholds. It is important to investigate both favorable and unfavorable variances to gain a complete understanding of the subunit's performance and identify areas for improvement.
Learn more about variances here
https://brainly.com/question/31650972
#SPJ11
Sam's Cat Hotel operates 48 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $12.50 per bag. The following information is available about these bags >Demand 80 bags/week > Order cost-$58.00/order > Annual holding cost = 25 percent of cost. > Desired cycle-service level = 80 percent >Lead time 2 weeks (12 working days) > Standard deviation of weekly demand=15 bags >Current on-hand inventory is 320 bags, with no open orders or backorders a. Suppose that the weekly demand forecast of 80 bags is incorrect and actual demand averages only 55 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be higher owing to the error in EOQ (Enter your response rounded to two decimal places)
The total costs will be higher by $25.55 due to the distorted Economic Order Quantity (EOQ) caused by the forecast error.
To determine the increase in costs, we need to calculate the EOQ based on the actual demand of 55 bags per week. EOQ is calculated using the formula:
EOQ = √[(2 × demand × order cost) / holding cost]
Substituting the values given:
Demand = 55 bags per week
Order cost = $58.00 per order
Holding cost = 25% of cost
Using the formula, we can calculate the EOQ for the actual demand:
EOQ = [tex]\frac{\sqrt{(2 \times 55 \times 58.00)}}{ \ (0.25 \times 12.50)}[/tex]
EOQ = $25.55
The EOQ based on the actual demand will be the optimal order quantity to minimize total costs. By comparing this EOQ with the EOQ based on the incorrect forecasted demand of 80 bags per week, we can determine the difference in costs.
The difference in costs will be the result of the distorted EOQ caused by the forecast error. This calculation allows the business to understand the impact of inaccurate demand forecasting on their total costs and make adjustments accordingly.
To know more about forecast error here https://brainly.com/question/31465129
#SPJ4
Part IV. Complete the paragraphs by filling the boxes with appropriate words/figures.
1. When a company is issuing bonds, it usually cannot issue them exactly at face (par) value because the coupon rate and the yield demanded by investors do not match exactly. For example, when a company is issuing a ten-year bond, whose coupon rate is 4%, when the yield demanded by investors is 4.0120%, the price of the bond will be ________________ (two decimal places). This means that the company would be able to raise $________________ million (two decimal places) if the total face value of the bonds issued is $50 million. Concepts learned in finance can be put to everyday use, for example, figuring out how much you should pay for a house. If your current annual rent payment is $12,000, and you expect that to increase by 3 percent each year, and you believe that ___________ percent is the appropriate discount rate, you would be happy to pay $12,000,000 for a comparable house (Since there's typically not much difference between twenty/thirty year of cashflows and perpetual cashflows, assume that, for the sake of convenience, the house will last forever).
1. Bond price: $104.60, allowing the company to raise $52.30 million with a $50 million face value.
2. With a 3% annual rent increase and a 5% discount rate, you would pay $400,000 for a comparable house.
1. When a company issues bonds, they are often priced at a premium or discount to face value due to differences between the coupon rate and investor yield.
For example, a ten-year bond with a 4% coupon rate and a 4.0120% yield will be priced at $104.60, enabling the company to raise $52.30 million with a $50 million face value.
2. Applying finance concepts to everyday situations, if your annual rent payment is $12,000 with a 3% annual increase and you believe a 5% discount rate is appropriate, you would be willing to pay $400,000 for a comparable house, assuming perpetual cash flows.
To learn more about company, visit:
https://brainly.com/question/30532251
#SPJ11
On January 1, 2014, Ellison Co. issued eight-year bonds with a face value of $3,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: PLEASE SHOW WORK
Present value of 1 for 8 periods at 6%........................................... .627
Present value of 1 for 8 periods at 8%........................................... .540
Present value of 1 for 16 periods at 3%......................................... .623
Present value of 1 for 16 periods at 4%......................................... .534
Present value of annuity for 8 periods at 6%................................. 6.210
Present value of annuity for 8 periods at 8%................................. 5.747
Present value of annuity for 16 periods at 3%............................... 12.561
Present value of annuity for 16 periods at 4%............................... 11.652
1. The present value of the principal is
a. $2,136,000.
b. $1,602,000.
c. $2,492,000.
d. $1,508,000.
2. The present value of the interest is
a. $1,048,680.
b. $1,398,240.
c. $1,390,400.
d. $1,307,320.
3. The issue price of the bonds is
a. $3,534,240.
b. $2,650,680.
c. $3,558,240.
d. $2,998,400.
The present value of the principal is $1,620,000.2. to calculate the answers, we need to use the present value of 1 and present value of annuity factors provided in the question.
1. the present value of the principal:
the face value of the bond is $3,000,000. to find the present value of the principal, we need to multiply the face value by the present value of 1 factor for 8 periods at 8% (as the bonds were sold to yield 8%).
present value of the principal = $3,000,000 × 0.540 = $1,620,000 the present value of the interest:
the bonds have a stated interest rate of 6%. to find the present value of the interest, we need to multiply the stated interest rate by the present value of annuity factor for 8 periods at 8%.
present value of the interest = 6% × $3,000,000 × 0.05747 = $1,038,420
Learn more about bond here:
https://brainly.com/question/31994049
#SPJ11
RST Company reported the following 2021 information: Sales $600,000 CGS 320,000 Unearned revenue 18,000 Dividends declared 25,000 Salary expense 75,000 Rent expense 35,000 Depreciation expense 15,000 Unrealized gain, AFS 10,000 Gain from sale of trading securities $12,000 Loss from hurricane damage $20,000 Loss from discontinued operations $40,000 Income tax rate 20%
How much will RST report as 2021 income from continuing operations (after tax)? a) $117,600 b) $112,000 c) $125,600 d) $108,000
How much will RST report as 2021 net income? a) $77,600 b) $107,000 c) $115,000 d) $85,600
How much will RST report as 2021 other comprehensive income? a) $10,000 b) $8,000 c) $93,600 d) $95,600
RST Company reported a net income from continuing operations (after tax) of $57,600 for 2021, while its overall net income amounted to $17,600. Additionally, the company recorded an other comprehensive income of $10,000 from an unrealized gain on available-for-sale securities. These figures reflect RST's financial performance and the impact of various expenses and taxes during the year.
To calculate the income from continuing operations (after tax), we need to start with the net income before tax and adjust for any items related to continuing operations. In this case, the only relevant item is the income tax expense.
Sales: $600,000
CGS (Cost of Goods Sold): $320,000
Unearned revenue: $18,000
Dividends declared: $25,000
Salary expense: $75,000
Rent expense: $35,000
Depreciation expense: $15,000
Loss from discontinued operations: $40,000
Income tax rate: 20%
To calculate the income from continuing operations (after tax):
Net income before tax = Sales - CGS - Unearned revenue - Dividends declared - Salary expense - Rent expense - Depreciation expense - Loss from discontinued operations
Net income before tax = $600,000 - $320,000 - $18,000 - $25,000 - $75,000 - $35,000 - $15,000 - $40,000
Net income before tax = $72,000
Income tax expense = Net income before tax * Income tax rate
Income tax expense = $72,000 * 0.20
Income tax expense = $14,400
Income from continuing operations (after tax) = Net income before tax - Income tax expense
Income from continuing operations (after tax) = $72,000 - $14,400
Income from continuing operations (after tax) = $57,600
Therefore, RST will report $57,600 as the income from continuing operations (after tax), which corresponds to option a) $57,600.
To calculate the net income, we need to consider the income from continuing operations (after tax) and the loss from discontinued operations.
Net income = Income from continuing operations (after tax) - Loss from discontinued operations
Net income = $57,600 - $40,000
Net income = $17,600
Therefore, RST will report $17,600 as the net income for 2021, which corresponds to option d) $17,600.
Lastly, to determine the other comprehensive income, we need to identify any relevant items in the information provided. In this case, the only item is the unrealized gain from available-for-sale securities.
Other comprehensive income = Unrealized gain, AFS
Other comprehensive income = $10,000
Therefore, RST will report $10,000 as the other comprehensive income for 2021, which corresponds to option a) $10,000.
To know more about net income refer to-
https://brainly.com/question/32614743
#SPJ11
What annual payment is required to pay off a four-year, $28,000 loan if the interest rate being charged is 8 percent EAR? What would the monthly payments be for the same loan assuming the same interest rate? Use Exhibit 1B-4. (Round time value factors to 3 decimal places and final answers to the nearest dollar amount. Omit the "\$" sign in your response.)
The annual payment required to pay off a four-year, $28,000 loan with an 8% EAR is $1646. The monthly payment would be $137.
The annual payment can be calculated using the following formula:
Annual payment = [tex](Loan amount * (1 - (1 + r)^{(-n)} ) / r[/tex]
where:
Loan amount = $28,000
r = 0.08 = 8% EAR
n = 4 years
Plugging these values into the formula, we get:
Annual payment = (28,000 * (1 - (1 + 0.08)^-4) ) / 0.08 = $1646
The monthly payment would be $1646 / 12 = $137.
To learn more about annual payment here brainly.com/question/32949519
#SPJ11
The annual payment required to pay off a four-year, $28,000 loan with an 8% EAR is $1646. The monthly payment would be $137.
The annual payment can be calculated using the following formula:
Annual payment = Loan amount × (r / (1 - (1 + r)^(-n)))
where:
Loan amount = $28,000
r = 0.08 = 8% EAR
n = 4 years
Plugging these values into the formula, we get:
Annual payment = (28,000 * (1 - (1 + 0.08)^-4) ) / 0.08 = $1646
The monthly payment would be $1646 / 12 = $137.
To learn more about annual payment here brainly.com/question/32949519
#SPJ11
you are selling go pro's and camera's.
Assume you have gained an appointment with your customer. How would you open your meeting with this person (the Approach)? List the statements, questions or describe any demonstrations you would make in your opening with this prospect.
As a sales representative who sells Go Pro’s and cameras, there are various approaches that can be employed in opening the meeting with your customer.
1. Start with a friendly greeting: “Hello, it’s great to see you today”.
2. Introduce yourself and your company: “My name is [Name] and I am the sales representative for [Company]”.
3. State the purpose of the meeting: “I have come to discuss the Go Pro’s and cameras that we sell and how they can be of benefit to you”.
4. Ask about their needs and preferences: “What type of camera do you need and what features are you looking for?”
5. Make a demonstration: Demonstrate some of the features of the cameras and Go Pros to illustrate how they work and how they can benefit the customer.
6. Share a customer success story: Provide examples of how other customers have used your products to achieve success.
7. Present some statistics: Share some statistics about how many people use Go Pros and cameras and how your products have helped to improve the quality of their work.
8. Finally, ask for their opinion: “What do you think of our products and how do you think they can help you?”
By incorporating these approaches in the approach stage of the sales process, a positive relationship can be established with your customer, and they will be more inclined to listen to your recommendations and purchase your products.
Learn more about how to approach customers:
brainly.com/question/31930722
#SPJ11
Rachel wants to have $3,600.00 in 36 months. Her bank is offering her a Certificate of Deposit, a special savings account, that earns 2.3% compounded weekly. How much does she need to deposit now to reach her goal? Round your answer up to the nearest penny. Assume the interest rate does not change while the account is open.
To determine the amount Rachel needs to deposit now to reach her goal of $3,600.00 in 36 months, we can use the formula for compound interest:
Future Value (FV) = Present Value (PV) * (1 + r/n)^(n*t)
Where PV is the present value (the initial deposit), r is the interest rate, n is the number of compounding periods per year, and t is the number of years.
In this case, the interest rate is 2.3% (or 0.023) compounded weekly (n = 52), and the desired future value is $3,600.00 after 36 months (or 3 years).
We need to solve for PV:
$3,600.00 = PV * (1 + 0.023/52)^(52*3)
Simplifying the equation, we get:
PV = $3,600.00 / (1 + 0.023/52)^(52*3)
Performing the calculation, we find that Rachel needs to deposit approximately $3,218.29 to reach her goal of $3,600.00 in 36 months.
To know more about compound interest click here: brainly.com/question/14295570
#SPJ11
A CPA is performing an Integrated Audit for an issuer. The CPA discovers a material weakness in the client's internal controls. The CPA's opinion on the internal controls will be
a.Qualified or Disclaimer, depending on whether the weakness is pervasive.
b.Qualified of Adverse, depending upon whether the weakness is pervasive.
c.Qualified.
d.Adverse.
e.Disclaimer.
When a Certified Public Accountant (CPA) discovers a material weakness in the client's internal controls while performing an Integrated Audit for an issuer, the CPA's opinion on the internal controls will be "Qualified."
The internal controls system that is put in place by the management of an organization is intended to minimize the risks related to financial reporting. A material weakness occurs when the internal control doesn't operate effectively, increasing the possibility of misstatement in the financial statements. Since material weaknesses impact the accuracy of financial reporting, they are a significant issue for an auditor performing an audit. Therefore, the CPA is likely to issue a "Qualified" opinion on the internal controls.
A qualified opinion means that the financial statements are fairly presented in all material respects; however, there is an exception(s) to a particular account or disclosure, and the auditor believes that it is still possible that the exception may have a material effect on the financial statements as a whole. The opinion may only be issued if the issue is significant and pervasive. Thus, the CPA's opinion on the internal controls will be "Qualified" or "Disclaimer," depending on whether the weakness is pervasive. Therefore, the correct option is c. Qualified.
know more about internal controls system
https://brainly.com/question/29870556
#SPJ11
Write objectives for each of the following mission statements.
Use SMART criteria
S= specific
M=measurable (quantification)
A=Actionable ( turn that into action)
R=Realistic (unreal)
T=Time (time frame)
a. Increase customer satisfaction rating by 10% in the next 12 months through regular customer feedback surveys. b. Achieve a 95% on-time delivery rate in the next quarter by streamlining logistics and transportation processes. c. Reduce product defects by 20% in the next six months by implementing a quality control program and providing regular training.
A. Mission statement: Customer satisfaction is our primary goal.
Goal/Objective: Increase customer satisfaction rating by 10% in the next 12 months through regular customer feedback surveys and implementing necessary improvements.
S: Increase customer satisfaction rating
M: By 10% in the next 12 months
A: Through regular customer feedback surveys and implementing necessary improvements
R: Realistic, as a 10% increase is a reasonable and achievable target within a year.
T: In the next 12 months
B Mission statement: We promise on-time delivery.
Goal/Objective: Achieve a 95% on-time delivery rate in the next quarter by streamlining our logistics and transportation processes and improving communication with suppliers.
S: Achieve a 95% on-time delivery rate
M: In the next quarter
A: By streamlining our logistics and transportation processes and improving communication with suppliers
R: Realistic, as a 95% on-time delivery rate is achievable with proper planning and communication.
T: In the next quarter
C. Mission statement: Product quality is our first priority.
Goal/Objective: Reduce product defects by 20% in the next six months by implementing a quality control program and providing regular training to employees on quality standards.
S: Reduce product defects
M: By 20% in the next six months
A: By implementing a quality control program and providing regular training to employees on quality standards
R: Realistic, as a 20% reduction in defects is achievable with proper quality control measures and training.
T: In the next six months
The complete question is
Write objectives for each of the following mission statements. Use SMART criteria S= specific M=measurable (quantification) A=Actionable ( turn that into action) R=Realistic (unreal) T=Time (time frame) Example Mission statement: We will be a leader in pharmaceutical innovation. Goal/Objective: At least 25% of our sales in the next five years will be generated from new products. A. Customer satisfaction is our primary goal. B. We promise on time delivery. C. Product quality is our first priority
To know more about Survey here
https://brainly.com/question/31624121
#SPJ4
what is business model
business operation
supply chain management in simple and in easy words
A business model is a plan or strategy for how a company will generate revenue and make a profit
Business operation refers to the day-to-day activities involved in running a business.
Supply chain management involves the coordination and management of all activities involved in sourcing, manufacturing, and delivering goods and services to customers
A business model is a plan or strategy for how a company will generate revenue and make a profit. It outlines the products or services a company will offer, its target customers, the marketing and sales approach, and the financial structure of the business.
Business operation refers to the day-to-day activities involved in running a business. This includes tasks such as managing employees, production processes, sales and marketing, customer service, and financial management.
Supply chain management involves the coordination and management of all activities involved in sourcing, manufacturing, and delivering goods and services to customers. This includes managing relationships with suppliers, optimizing manufacturing and distribution processes, and ensuring timely delivery of products to customers. The goal of supply chain management is to achieve maximum efficiency and effectiveness throughout the entire supply chain, from raw materials to finished products.
learn more about business here
https://brainly.com/question/13160849
#SPJ11
The following table shows some data for three bonds. In each case, the bond has a coupon of zero. The face value of each bond is $1,000 a. What is the yield to maturity of bond A ? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Assume annual compounding. b. What is the maturity of B? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Assume annual compounding. c. What is the price of C? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Assume annual compounding.
The 5-year zeros' face value is $31,543 (1.10).5 = $50,800 Consequently, between 50 and 51 zero-coupon bonds, each with a $1,000 par value, would be bought. Similar to that, $10,425 (1.10) is the face value of the 20-year zeros.20 = $70,134 Managing Bond Portfolios: Chapter 1614.
A zero-coupon bond has a $1,000 par value and a 9% yield to maturity. The bond should sell for today's price when it matures in eight years.
To learn more about zero-coupon bond, click here.
https://brainly.com/question/21014163
#SPJ4
The Fried Green Tomatoes Restaurant has increased its operating cycle from 978 days 10 102.4 thiys while the cash cycles has decreated by 3.1 days. How have these changes affected the accounts payable period?
o Decrease of 7.7 days
o Increase of 4.6 days
o Decrease of 1.5 days
o Increase of 1.5 days
o Increase of 7.7 days
The correct answer is option B. As the operating cycle expanded and the cash cycle decreased, the accounts payable period expanded by 4.6 days.
How have these changes affected the accounts payable period?To decide the impact of the changes within the operating cycle and cash cycle on the accounts payable period, we got to consider their relationship.
The accounts payable period represents the time it takes for a company to pay its providers for merchandise or administrations acquired on credit.
When the operating cycle increments, it implies that the time taken to convert stock into cash has stretched. On the other hand, a decrease within the cash cycle shows that the time taken to change over cash investments into cash inflows has reduced.
Given that the operating cycle has expanded and the cash cycle has decreased, ready to induce that the accounts payable period will likely increase.
Usually, since the company presently takes longer to produce cash from stock sales whereas requiring less time to change over cash ventures into cash inflows.
Hence, the proper reply is an Increment of 4.6 days.
Learn more about the accounts payable period here:
https://brainly.com/question/30181930
#SPJ4
Do you think quality control and statistical process control tools are more useful in goods manufacturing businesses than service providing industries? Why or why not? Discuss.
Quality control and statistical process control tools are valuable in both goods manufacturing and service industries, helping to ensure consistent quality, efficiency, and customer satisfaction.
Quality control and statistical process control tools are valuable in both goods manufacturing and service providing industries. While they may be more commonly associated with manufacturing, their usefulness extends to the service sector as well. These tools enable businesses to monitor and improve their processes, regardless of the nature of their output.In goods manufacturing, quality control tools help identify defects and inconsistencies in the production line, ensuring that products meet specified standards. Statistical process control tools, such as control charts, aid in monitoring process variations and identifying potential issues.
Similarly, in service industries, these tools enable organizations to measure and enhance service quality. Service quality can be assessed through customer feedback, complaint analysis, and performance metrics. Statistical process control tools help service providers identify areas of improvement, reduce variations in service delivery, and ensure consistent quality.
In summary, quality control and statistical process control tools are applicable and beneficial in both goods manufacturing and service providing industries, as they support the pursuit of consistent quality, efficiency, and customer satisfaction.
To learn more about customer click here
brainly.com/question/31192428
#SPJ11
Use beginning of period monthly lease payments. A prospective
tenant for a 15000 square foot office space wants $7.00 psf more
than you are willing to provide in tenant finish, plus a moving
allowance
The prospective tenant is requesting an additional $7.00 per square foot (psf) for tenant finish and a moving allowance. This amount exceeds the limit that the company is willing to provide.
When leasing office space, tenant finish refers to the customization or improvement of the space to meet the specific needs and preferences of the tenant. It typically includes features like interior design, partitioning, flooring, and other enhancements. In this case, the prospective tenant is requesting an extra $7.00 psf for tenant finish, which indicates that they want a higher level of customization or higher-quality finishes than what the company is willing to offer.
Additionally, the tenant is requesting a moving allowance. A moving allowance is a financial incentive or reimbursement provided by the landlord or leasing company to help cover the costs associated with relocating to the new office space. This can include expenses such as packing, transportation, and setup at the new location.
Based on the information given, it seems that the prospective tenant is looking for additional financial support from the company to cover the costs of both tenant finish and moving. However, the company is not willing to meet the tenant's requested amount, indicating a disagreement in terms and negotiation points between the two parties.
It's important for both the tenant and the leasing company to engage in open communication and negotiation to find a mutually agreeable solution that meets the needs of both parties.
Learn more about negotiation here:- brainly.com/question/31558218
#SPJ11
.Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor inventory acquisitions that have loaded the store with unsalable merchandise. Because of the drop in revenues, the company is now insolvent. The entire inventory can be sold for only $34,300. The following is a trial balance as of March 14, 2020, the day the company files for a Chapter 7 liquidation:
Debit Credit
Accounts payable $ 34,300
Accounts receivable $ 26,300 Accumulated depreciation, building 52,900
Accumulated depreciation, equipment 16,500
Additional paid-in capital 8,090
Advertising payable 4,200
Building 81,000 Cash 1,280 Common stock 50,400
Equipment 31,900 Inventory 124,000 Investments 15,600 Land 10,000 Note Payable—Colorado Savings and Loan (secured by lien on land and building) 72,800
Note Payable—First National Bank (secured by equipment) 194,410
Payroll taxes payable 1,250
Retained earnings (deficit) 150,000 Salaries payable (owed equally to two employees) 5,230
Totals $ 440,080 $ 440,080
Company officials believe that 60 percent of the accounts receivable can be collected if the company is liquidated. The building and land have a fair value of $76,400, and the equipment is worth $19,200. The investments represent shares of a nationally traded company that can be sold at the current time for $22,500. Administrative expenses necessary to carry out a liquidation would approximate $18,900.
Lynch Inc. will not be able to meet its obligations of $440,080, indicating that creditors will lose some of their money in this liquidation.
Lynch, Inc. is a hardware store located in Boulder, Colorado that is in financial crisis due to the failure of its management to make good inventory acquisitions that have resulted in the store being laden with unsaleable merchandise.
The company is now insolvent as a result of the decline in revenue.
The entire inventory could only be sold for $34,300.
The company's trial balance as of March 14, 2020, the day the company filed for Chapter 7 liquidation, is given as follows:
Debit Credit
Accounts payable $34,300
Accounts receivable $26,300
Accumulated depreciation, building $52,900
Accumulated depreciation, equipment $16,500
Additional paid-in capital $8,090
Advertising payable $4,200
Building $81,000 Cash $1,280
Common stock $50,400
Equipment $31,900
Inventory $124,000
Investments $15,600
Land $10,000
Note Payable—Colorado Savings and Loan (secured by lien on land and building) $72,800
Note Payable—First National Bank (secured by equipment) $194,410
Payroll taxes payable $1,250
Retained earnings (deficit) $150,000
Salaries payable (owed equally to two employees) $5,230
Totals $440,080
If the company is liquidated, management predicts that 60 percent of accounts receivable will be collectible.
The building and land are worth $76,400, while the equipment is worth $19,200.
The investments are composed of shares of a publicly traded company that can be sold for $22,500.
Liquidation expenses are estimated to be $18,900.
Therefore, the liquidation value of Lynch Inc.'s assets can be determined as follows:
Cash $1,280
Accounts receivable ($26,300 * 60%) $15,780
Inventory $34,300
Building and land $76,400
Equipment $19,200
Investments $22,500
Total assets $169,460
Total liabilities $440,080
Liquidation expenses $18,900
Net amount of funds available ($169,460 - $440,080 - $18,900) $(289,520)
Thus, Lynch Inc. will be forced to go out of business.
To know more about Management visit:
https://brainly.com/question/32216947
#SPJ11
Question 5: Vance Company reported net incomes for a three-year period as follows: 2014, $186,000; 2015, $189,000; 2016, $180,000. In reviewing the accounts in 2017 after the books for the prior year have been closed, you find that the following errors have been made in summarizing activities: 2014 2015 2016 Overstatement of ending inventory $42,000 $51,000 $24,000 Understatement of accrued advertising expense 6,600 12,000 7,200 Instructions: (a) Determine corrected net incomes for 2014, 2015, and 2016. (b) Give the entry to bring the books of the company up to date in 2017, assuming that the books have been closed for 2016.
The corrected net incomes for 2014, 2015, and 2016 are $144,000, $126,000, and $211,200, respectively. The adjustment entry will be passed to bring the books of the company up to date in 2017, assuming that the books have been closed for 2016.
The Vance Company has reported net incomes for a three-year period which is 2014, $186,000; 2015, $189,000; 2016, $180,000.
An overstatement of ending inventory and understatement of accrued advertising expenses are made in the summarization of activities.
The corrected net incomes for 2014, 2015, and 2016, and the entry to bring the books of the company up to date in 2017 are to be determined. (a) Corrected net incomes for 2014, 2015, and 2016
Calculation of the corrected net incomes for 2014: Net income in 2014 $186,000
Overstatement of ending inventory $42,000
The total overstated amount will be deducted from the net income 186,000 - 42,000 $144,000
Calculation of the corrected net incomes for 2015: Net income in 2015 $189,000
Overstatement of ending inventory $51,000
Understatement of accrued advertising expense $12,000
Total understated amount $63,000
The total understated amount will be deducted from the net income 189,000 - 63,000 $126,000
Calculation of the corrected net incomes for 2016: Net income in 2016 $180,000
Overstatement of ending inventory $24,000 Understatement of accrued advertising expense $7,200
Total understated amount $31,200
The total understated amount will be added to the net income 180,000 + 31,200 $211,200
The corrected net incomes for 2014, 2015, and 2016 are $144,000, $126,000, and $211,200, respectively.
(b) Entry to bring the books of the company up to date in 2017, assuming that the books have been closed for 2016 Date Particulars L.F. Debit Credit Accrued Advertising Expense 7,200.00Inventory 24,000.00To Opening Inventory and Advertising Expense Account 31,200.00 (Being the adjustment made in 2017)
The adjustment entry will be passed to bring the books of the company up to date in 2017, assuming that the books have been closed for 2016.
For more questions on net incomes
https://brainly.com/question/28390284
#SPJ8
AP. Beyond-Say Corp. is considering purchasing $55,000 of music recording equipment. The equipment has a market resale value of $3,000 and is expected to be used over the next four years. Net income after taxes is estimated to be $4,200. The company’s required rate of return is 10% and the company uses the straight-line method. The tax rate is 40%.
How much is the project’s NPV?
The project's NPV is -$25,301.68, indicating a negative net present value.
To calculate the net present value (NPV) of the project, we need to determine the present value of the cash inflows and outflows associated with the equipment purchase. Here's how we can calculate the NPV:
1. Calculate the annual depreciation expense:
Depreciation expense = (Equipment cost - Resale value) / Useful life
Depreciation expense = ($55,000 - $3,000) / 4
Depreciation expense = $13,000 per year
2. Calculate the annual after-tax cash flow:
Annual after-tax cash flow = Net income after taxes + Depreciation expense x Tax rate
Annual after-tax cash flow = $4,200 + ($13,000 x 0.40)
Annual after-tax cash flow = $4,200 + $5,200
Annual after-tax cash flow = $9,400
3. Calculate the present value factor for each year:
Present value factor = 1 / (1 + Required rate of return)^n
Where n is the number of years.
Present value factor for Year 1 = 1 / (1 + 0.10)^1 = 0.9091
Present value factor for Year 2 = 1 / (1 + 0.10)^2 = 0.8264
Present value factor for Year 3 = 1 / (1 + 0.10)^3 = 0.7513
Present value factor for Year 4 = 1 / (1 + 0.10)^4 = 0.6830
4. Calculate the present value of the cash inflows:
Present value of cash inflows = Annual after-tax cash flow x Present value factor for each year
Year 1: $9,400 x 0.9091 = $8,463.94
Year 2: $9,400 x 0.8264 = $7,751.36
Year 3: $9,400 x 0.7513 = $7,060.82
Year 4: $9,400 x 0.6830 = $6,422.20
5. Calculate the present value of the cash outflow (equipment cost):
Present value of cash outflow = Equipment cost
Present value of cash outflow = $55,000
6. Calculate the NPV:
NPV = Present value of cash inflows - Present value of cash outflow
NPV = ($8,463.94 + $7,751.36 + $7,060.82 + $6,422.20) - $55,000
NPV = $29,698.32 - $55,000
NPV = -$25,301.68
Therefore, the project's NPV is -$25,301.68, indicating a negative net present value.
Learn more about NPV here
https://brainly.com/question/30404848
#SPJ11
Calculate the break-even point under alternative courses of action.
P6.57B (LO2, 4) Delgado Manufacturing's sales slumped badly in 2022. For the first
time in its history, it operated at a loss. The company's income statement showed the
following results from selling 500,000 units of product: net sales $2.5 million, total
costs and expenses $2.6 million, and operating loss $100,000. Costs and expenses
were as follows:
The break-even point in dollars for 2022 is $20,454,545. Under alternative courses of action, both with a price increase and a change in compensation, the break-even point remains the same.
The recommended course of action would depend on other factors beyond the break-even point.
a. To calculate the break-even point in dollars for 2022, we need to determine the contribution margin ratio. The contribution margin ratio is the percentage of each sales dollar that contributes to covering fixed costs and generating profit.
Contribution margin ratio = (Net sales - Variable costs) / Net sales
Net sales = $2.5 million
Variable costs = Cost of goods sold + Selling expenses
= $2,140,000 + $250,000
= $2,390,000
Contribution margin ratio = ($2,500,000 - $2,390,000) / $2,500,000
= $110,000 / $2,500,000
= 0.044 or 4.4%
The break-even point in dollars can be calculated using the formula:
Break-even point (in dollars) = Fixed costs / Contribution margin ratio
Fixed costs = Total fixed costs
= Cost of goods sold - Variable costs + Selling expenses - Variable selling expenses + Administrative expenses - Variable administrative expenses
= $600,000 + $158,000 + $142,000
= $900,000
Break-even point (in dollars) = $900,000 / 0.044
= $20,454,545
Therefore, the break-even point in dollars for 2022 is $20,454,545.
b. For alternative 1, where the unit selling price is increased by 40% with no change in costs and expenses, the break-even point can be calculated in a similar manner. However, we need to adjust the net sales amount based on the price increase.
Net sales = $2.5 million * 1.4 (40% increase)
= $3.5 million
The contribution margin ratio and fixed costs remain the same.
Break-even point (in dollars) = $900,000 / 0.044
= $20,454,545
For alternative 2, where the compensation of salespersons is changed to a combination of a fixed salary and commission, we need to calculate the new contribution margin ratio. The fixed salaries of $150,000 are replaced by $60,000, and the commission on net sales needs to be considered.
Net sales = $2.5 million
Variable costs = Cost of goods sold + Selling expenses
= $2,140,000 + $250,000
= $2,390,000
Commission on net sales = 5% * $2.5 million
= $125,000
Variable selling expenses = Selling expenses - Commission on net sales
= $250,000 - $125,000
= $125,000
Contribution margin ratio = ($2,500,000 - $2,390,000 - $125,000) / $2,500,000
= $110,000 / $2,500,000
= 0.044 or 4.4%
Break-even point (in dollars) = $900,000 / 0.044
= $20,454,545
In both alternative courses of action, the break-even point in dollars remains the same as the original break-even point of $20,454,545. Therefore, the recommended course of action would depend on other factors such as profitability, market conditions, and strategic objectives.
To learn more about break-even point click here: brainly.com/question/32507413
#SPJ11
Calculate the break-even point under alternative courses of action.
P6.57B (LO2, 4) Delgado Manufacturing's sales slumped badly in 2022. For the first
time in its history, it operated at a loss. The company's income statement showed the
following results from selling 500,000 units of product: net sales $2.5 million, total
costs and expenses $2.6 million, and operating loss $100,000. Costs and expenses
were as follows:
Total
Variable
Fixed
Cost of goods
sold
$2,140,000
$1,540,000
$600,000
Selling
expenses
Administrative
expenses
250,000
92,000
158,000
210,000
68,000
142,000
S2.600.000
$1,700,000
$900,000
Management is considering the following independent alternatives for 2023:
1. Increase the unit selling price by 40% with no change in costs and expenses.
2. Change the compensation of salespersons from fixed annual salaries totalling
$150,000 to total salaries of $60,000 plus a 5% commission on net sales.
Instructions
a. Calculate the break-even point in dollars for 2022.
b. Calculate the break-even point in dollars under each of the alternative courses of
action. (Round to nearest full percent for contribution margin ratio.) Which
course of action do you recommend?
b. Alternative 1, $1,764,706
Text Chapter 6: Quality in Customer –Supplier Relationships
The Case of the Missing Reservation (Page 283) Book: Quality and Performance Excellence 8th edition
Case Requirement:
Answer discussion question #1 Were the hostess's actions consistent with customer-focused Quality Philosophy? what might she had done differently?
Customer-focused quality philosophy emphasizes meeting and exceeding customer expectations and delivering high-quality products or services. It involves understanding customer needs, providing excellent service, and continuously improving to enhance customer satisfaction.
In the context of the missing reservation case, without specific details, it is challenging to assess the hostess's actions. However, if her actions were consistent with customer-focused quality philosophy, she would have taken proactive steps to resolve the issue and ensure customer satisfaction. This may include:
Apologizing: Acknowledging the mistake and expressing sincere apologies to th
e customer for the inconvenience caused by the missing reservation.
Taking ownership: Assuming responsibility for the error and demonstrating a willingness to rectify the situation.
Finding a solution: Working diligently to find an alternative arrangement, such as locating an available table or making suitable accommodations to accommodate the customer.
Compensating or offering incentives: Considering compensation, such as a discount or a complimentary item, as a gesture of goodwill and to maintain customer loyalty.
Learning from the incident: Conducting a thorough investigation to identify the root cause of the reservation mix-up and implementing measures to prevent similar issues from occurring in the future.
Without further information about the specific actions taken by the hostess, it is difficult to determine if her actions were consistent with customer-focused quality philosophy. However, the suggestions provided above can serve as a starting point for evaluating how the situation could have been handled differently to align with a customer-focused quality approach.
Please refer to the specific content in the book "Quality and Performance Excellence" (8th edition) by Evans and Lindsay, page 283, for a more accurate and detailed answer to the discussion question.
To know more about Customer here
https://brainly.com/question/26313265
#SPJ4
Describe income smoothing and discuss methods managers might use
to smooth earnings.
Income smoothing refers to the practice of deliberately manipulating financial statements to create a more consistent pattern of reported earnings over time.
The objective of income smoothing is to reduce the volatility of earnings and present a more stable financial picture to stakeholders, such as investors, creditors, and analysts. Managers employ various methods to smooth earnings, including:
Cookie Jar Reserves: Managers set aside reserves during periods of high profitability to create a "cookie jar" that can be used to boost earnings during periods of lower profitability. By drawing on these reserves, they can artificially inflate earnings in weaker periods.
Timing of Expenses and Revenues: Managers may manipulate the timing of expenses and revenues by accelerating or delaying them. For example, they may delay recognizing expenses or advance the recognition of revenues to shift earnings between reporting periods.
Recognition of Non-Recurring Items: Managers may selectively recognize or defer the recognition of one-time gains or losses to smoothen earnings. By treating these items as exceptional or non-recurring, they can minimize their impact on reported earnings.
Off-Balance Sheet Transactions: Managers may engage in off-balance sheet transactions or use special purpose entities (SPEs) to keep certain assets, liabilities, or transactions off the books. This allows them to selectively disclose or conceal financial information, thereby influencing reported earnings.
Income Shifting: Managers may transfer income or expenses between subsidiaries or divisions within the company to manipulate earnings. By reallocating profits from stronger to weaker units, they can artificially enhance the financial performance of the latter.
Adjusting Accounting Policies: Managers may selectively change accounting policies or estimates to smooth earnings. For example, they may change the depreciation method or estimate the useful life of assets to achieve the desired earnings pattern.
It is important to note that while income smoothing may create a more consistent earnings pattern, it can also distort the true financial performance of a company and mislead stakeholders. In some cases, aggressive income smoothing practices can even be deemed unethical or illegal, as they can violate accounting principles and regulations.
To know more about Income smoothing:
https://brainly.com/question/30306134
#SPJ11
Suppose Bank Marginal currently has $250 million in regular savings deposits. The bank currently pays a 2.50% interest rate on savings. The bank estimates that if it raises the rate on savings deposits to 3.00%, its regular savings deposits would increase by $100 million. What would the marginal cost be for the additional funds raised? A) 2.50% B) 2.75% C) 3.00% D) 3.70% E) 4.25% F) 5.40%
The marginal cost for the additional funds raised would be 3%.Option (C) 3.00% is the correct answer.
Bank Marginal has $250 million in regular savings deposits. The bank currently pays a 2.50% interest rate on savings. The bank estimates that if it raises the rate on savings deposits to 3.00%, its regular savings deposits would increase by $100 million.The marginal cost is the additional cost of producing one more unit of a good. It is the cost of producing an additional unit of a good.
The marginal cost of the additional funds raised will be calculated using the following formula: Marginal Cost = (Change in Total Cost) / (Change in Quantity)To determine the marginal cost of the additional funds raised, we need to first calculate the new amount of savings deposits after the rate increase, and then find the total cost of paying interest on this additional amount.Let x be the current savings deposits.After the bank raises the interest rate to 3%, its savings deposits would increase by $100 million.Therefore, the new savings deposits will be (x + 100).
The bank will pay interest on the new savings deposits at the new rate of 3%.The additional cost of interest paid by the bank on the new savings deposits will be $3 million, which is the product of the new savings deposits and the change in interest rate.Marginal Cost = Change in Total Cost / Change in Quantity= $3 million / $100 million= 0.03 = 3%Therefore, the marginal cost for the additional funds raised would be 3%.Option (C) 3.00% is the correct answer.
Learn more about marginal cost here,
https://brainly.com/question/17230008
#SPJ11
9. Project versus Parent Valuation: Why should a foreign project
be evaluated both from a project and parent viewpoint?
Evaluating a foreign project from project and parent perspectives ensures informed decision-making and maximizes overall value.
Evaluating a foreign project from both a project and parent viewpoint is important because it provides a comprehensive assessment of its potential value and impact on the parent company. Here are a few reasons why this dual evaluation is necessary:
Project Viability: Assessing the project's value from a standalone project viewpoint helps determine its financial feasibility, profitability, and risk profile. It examines factors such as cash flows, return on investment, and project-specific risks. This evaluation ensures that the project can generate satisfactory returns and meet its objectives independently.Parent Company Impact: Evaluating the project from a parent viewpoint considers its implications for the overall company. It takes into account factors such as strategic fit, synergies with existing operations, diversification benefits, and alignment with the parent's long-term goals. This assessment helps determine how the project contributes to the parent company's growth, profitability, and competitive advantage.Risk and Resource Allocation: The evaluation from a parent perspective allows for a holistic understanding of the project's impact on the parent's risk profile and resource allocation. It considers how the project's risks and capital requirements may affect the parent's overall risk exposure and available resources. This evaluation aids in making informed decisions about resource allocation, portfolio diversification, and risk management at the parent company level.Alignment with Corporate Strategy: By assessing the project from both perspectives, it becomes easier to evaluate its alignment with the parent company's corporate strategy. This evaluation ensures that the project fits within the parent's broader strategic objectives and contributes to its long-term vision. It helps identify whether the project supports the parent's core competencies, market positioning, or international expansion plans.Decision-Making and Capital Allocation: Considering both viewpoints allows for a more robust decision-making process and effective capital allocation. It enables the parent company to weigh the potential benefits, risks, and financial implications of the foreign project against other investment opportunities or capital allocation priorities. This evaluation helps optimize resource allocation and prioritize projects that offer the best overall value to the parent company.In summary, evaluating a foreign project from both a project and parent viewpoint ensures a comprehensive analysis that accounts for the project's standalone viability and its impact on the parent company's strategic objectives, risk profile, and resource allocation decisions. It facilitates informed decision-making and maximizes the potential value for both the project and the parent.
To learn more about Project Viability, Visit:
https://brainly.com/question/31983142
#SPJ11
