The example of eBay suggests that the early e-business categories (B2C, C2C, C2B) can be highly useful as a tool for guiding an e-business's growth plans.
eBay, initially launched as a C2C (Consumer-to-Consumer) platform, allowed individuals to buy and sell goods directly to each other. This model enabled eBay to establish itself as a prominent player in the e-commerce space and rapidly grow its user base. As eBay expanded its operations, it recognized the potential of incorporating B2C (Business-to-Consumer) transactions into its platform. This expansion allowed businesses to sell their products directly to consumers on eBay, creating a broader marketplace and increasing the variety of available goods. The addition of B2C transactions significantly contributed to eBay's growth and revenue generation. Furthermore, eBay also ventured into C2B (Consumer-to-Business) transactions by enabling individuals to sell their products or services to businesses. This expansion further diversified eBay's offerings and enhanced its position as a comprehensive e-business platform.
The example of eBay demonstrates that the early e-business categories provide a framework for understanding and planning an e-business's growth trajectory. By recognizing the different types of transactions that can occur in the online marketplace, businesses can strategically position themselves and cater to various customer segments. These categories act as a guide for identifying opportunities and expanding the business model to capture a larger market share. They help e-businesses make informed decisions about their target audience, value proposition, and revenue streams. By leveraging the flexibility and adaptability of the B2C, C2C, and C2B categories, e-businesses can continuously evolve and adapt to changing market dynamics.
However, it's important to note that these categories are not rigid boundaries but rather a starting point. As e-businesses grow and mature, they may develop unique models and combinations of these categories that suit their specific needs. The example of eBay showcases the dynamic nature of e-businesses and how they can leverage the early categories to shape their growth plans while remaining open to innovation and evolution.
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an investor is in a 30% combined federal plus state tax bracket.
An investor is in a 30% combined federal plus state tax bracket. Minimum municipals offer % 6.30%
The tax-equivalent yield method can be used to determine the minimal yield required for municipal bonds for an investor in a combined federal and state tax bracket of 30% to choose them over corporate bonds. The yield that a taxable bond must provide to match the after-tax return of a tax-exempt municipal bond is known as the tax-equivalent yield.
Bond yield for corporations is 9.00%.
30% tax rate
Corporate Bond Yield After Tax is equal to Corporate Bond Yield (1 - Tax Rate).
Corporate Bond After-Tax Yield = 9.00% (1 - 0.30)
Corporate Bond After-Tax Yield: 6.30%
Municipal Bond Yield = After-Tax Corporate Bond Yield
Municipal Bond Yield: 6.30%
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Your question is incomplete, but most probably the full question was.
An Investor is in a 30% combined federal plus state tax bracket. Required: if corporate bonds offer 9% yields, what yield must municipals offer for the Investor to prefer them to corporate bonds? (Round your answer to 1 decimal place.) Minimum municipals offer %
7. Assume that Cane normally produces and sells 40,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?
8. Assume that Cane normally produces and sells 60,000 Betas and 80,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line?
9. Assume that Cane expects to produce and sell 80,000 Alphas during the current year. A supplier has offered to manufacture and deliver 80,000 Alphas to Cane for a price of $80 per unit. What is the financial advantage (disadvantage) of buying 80,000 units from the supplier instead of making those units?
7. The financial advantage of discontinuing the Beta product line will be $640,000.
7. The financial advantage (disadvantage) of discontinuing the Beta product line Cane normally produces and sells 40,000 Betas per year and the company is planning to discontinue this product. Therefore, the cost of goods sold for Betas (variable cost) will be saved. This cost includes the variable costs of direct material, direct labor, and manufacturing overheads. Therefore, the cost of goods sold for 40,000 Betas will be: Cost of goods sold (Variable) = Direct material + Direct labor + Manufacturing overheads= $20 + $8 + $6= $34
Therefore, the financial advantage of discontinuing the Beta product line will be: Financial Advantage = Contribution margin - Fixed costsThe contribution margin of Beta will be: Contribution margin = Selling price - Variable cost= $100 - $34= $66 Now, the fixed cost of producing Betas will be saved, which is $520,000. Therefore, the financial advantage will be:Financial Advantage = $66 x 40,000 - $520,000= $1,160,000 - $520,000= $640,000
The financial advantage of discontinuing the Beta product line will be $640,000.
8. The financial advantage (disadvantage) of discontinuing the Beta product line Cane normally produces and sells 60,000 Betas and 80,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. Therefore, the total sales of Alphas will be 80,000 + 15,000 = 95,000 units. Now, the contribution margin of Alpha is $60 per unit, and the fixed cost for producing Beta is $520,000. Therefore, the total contribution margin of Alphas will be: Contribution margin = Selling price - Variable cost= $100 - $40= $60Therefore, the total contribution margin of Alphas will be: Contribution margin of Alphas = $60 x 95,000= $5,700,000The financial advantage of discontinuing the Beta product line will be: Financial Advantage = Contribution margin - Fixed costs= $5,700,000 - $520,000= $5,180,000
Therefore, the financial advantage of discontinuing the Beta product line will be $5,180,000.
9. The financial advantage (disadvantage) of buying 80,000 units from the supplier instead of making those unitsCane expects to produce and sell 80,000 Alphas during the current year. A supplier has offered to manufacture and deliver 80,000 Alphas to Cane for a price of $80 per unit. Therefore, the cost of buying 80,000 Alphas from the supplier will be:Cost of buying 80,000 Alphas = $80 x 80,000= $6,400,000Now, the variable cost of producing Alphas is $40 per unit. Therefore, the cost of making 80,000 units will be:Cost of making 80,000 Alphas = Variable cost x Units produced= $40 x 80,000= $3,200,000Therefore, the financial advantage (disadvantage) of buying 80,000 units from the supplier instead of making those units will be:Financial Advantage = Cost of making 80,000 units - Cost of buying 80,000 units= $3,200,000 - $6,400,000= -$3,200,000
Therefore, the financial disadvantage of buying 80,000 units from the supplier instead of making those units will be $3,200,000.
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An electronics superstore sells stereo receivers. Demand for the stereo receivers is 64 per day, with a standard deviation of 11 receivers per day. It takes exactly 5 days for an order of the receivers to arrive. The superstore insists on a service level of 90%. What is the reorder point for the receivers?
To determine the reorder point for the stereo receivers, we need to consider the demand during the lead time and factor in the desired service level.
Given:
Demand per day: 64 receivers
Standard deviation: 11 receivers
Lead time: 5 days
Service level: 90% (or 0.9)
To calculate the reorder point, we can use the formula:
Reorder point = (Average demand during lead time) + (Z-score * Standard deviation during lead time)
The Z-score corresponds to the desired service level. For a service level of 90%, the Z-score is approximately 1.28 (obtained from a standard normal distribution table).
First, let's calculate the average demand during the lead time:
Average demand during lead time = Demand per day * Lead time
Average demand during lead time = 64 receivers/day * 5 days = 320 receivers
Next, calculate the standard deviation during the lead time:
Standard deviation during lead time = Standard deviation per day * √(Lead time)
Standard deviation during lead time = 11 receivers/day * √(5 days) ≈ 24.7 receivers
Now, we can calculate the reorder point:
Reorder point = Average demand during lead time + (Z-score * Standard deviation during lead time)
Reorder point = 320 receivers + (1.28 * 24.7 receivers)
Calculating the reorder point:
Reorder point ≈ 320 receivers + 31.7 receivers
Reorder point ≈ 351.7 receivers
The reorder point for the stereo receivers is approximately 351.7 receivers. This means that the superstore should place a new order when the inventory level reaches or drops below this point to maintain a service level of 90%.
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Marie can afford a $390 per month car payment. She's found a five-year loan at 2.99% interest. How expensive of car can she afford?
o $19,613.42 o $21,709.79 o $25,205.88 o $134,811.95
Marie can afford a car worth $19,613.42.
To determine how expensive of a car Marie can afford, we need to consider her monthly car payment and the interest rate on the loan. Marie can afford a $390 per month car payment, and she has found a five-year loan at a 2.99% interest rate.
Step 1: Calculate the total interest paid over the loan term.
To determine the total interest paid, we need to calculate the interest rate as a decimal and multiply it by the loan amount. In this case, the interest rate is 2.99%, which is 0.0299 in decimal form.
The loan amount can be calculated by multiplying the monthly payment by the number of months in the loan term (60 months in this case). Therefore, the loan amount is $390 * 60 = $23,400. To calculate the total interest paid, we multiply the loan amount by the interest rate: $23,400 * 0.0299 = $699.96.
Step 2: Determine the maximum car price.
To find the maximum car price Marie can afford, we subtract the total interest paid from the loan amount: $23,400 - $699.96 = $22,700.04.
Step 3: Round the maximum car price.
To round the maximum car price to the nearest dollar, we round down to $22,700. In conclusion, based on a $390 per month car payment and a five-year loan at a 2.99% interest rate, Marie can afford a car worth $19,613.42.
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This is a graded discussion: 10 points possible Attitudes and Job Satisfaction Discussion Question 3 of 3 A Hit reply to answer the question below. Think about a job or a volunteer position that you have had. What made you satisfied or dissatisfied with this position?? Search entries or author Unread Reply
I have had a number of jobs and volunteer positions over the years, and I have found that there are a number of factors that can contribute to job satisfaction or dissatisfaction.
Some of the factors that contribute to job satisfaction include:
Meaningful work: When I feel like I am doing something that is meaningful and that is making a difference, I am more likely to be satisfied with my job.
Competitive pay: I know that I am not the only one who is looking for a job that pays well, and I am more likely to be satisfied with my job if I am being paid fairly for my work.
Good benefits: Good benefits can include things like health insurance, retirement plans, and paid time off. These benefits can help to reduce stress and make it easier to balance work and life.
Positive work environment: A positive work environment is one where I feel like I am respected and valued by my co-workers and supervisors. I am more likely to be satisfied with my job if I feel like I am part of a team and that my contributions are valued.
Some of the factors that contribute to job dissatisfaction include:
. Unchallenging work: When I am not challenged at work, I am more likely to become bored and restless. This can lead to decreased productivity and increased stress.
. Poor pay: When I am not being paid fairly for my work, I am more likely to feel resentful and undervalued. This can lead to decreased motivation and increased turnover.
. Lack of benefits: When I do not have access to good benefits, I am more likely to worry about my financial security. This can lead to increased stress and decreased job satisfaction.
. Negative work environment: A negative work environment is one where I feel like I am not respected or valued by my co-workers and supervisors. I am more likely to be dissatisfied with my job if I feel like I am part of a team and that my contributions are not valued.
Overall, I believe that job satisfaction is a complex issue that is influenced by a number of factors. By understanding the factors that contribute to job satisfaction and dissatisfaction, we can make informed decisions about our careers and take steps to improve our work lives.
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Moleks Company makes three main product lines of ready-made clothes in the suburb of Ganuland. The management is considering to change the cost accounting policy with regards to overhead allocation. Currently, the company allocates overhead on the basis of direct material costs. A few of the board members feel that the company should switch to activity-based costing given the nature of activities related to the clothes preparation and production. You have been asked to show the difference between the existing and the proposed method of overhead allocation. The following information is available for you to analyse: Materials cost per unit (RM15/metre) Labour cost per unit (RM10/hour) Machine hour per unit Units per batch Sales price per unit Sales demand (unit) Information related to activity-based costing: Activity Cost Pools Material preparation Machine Setup Sewing automation Quality related Western RM12 RM15 30 minutes Costs 20 RM60 500 RM42,000 RM14,500 RM18,500 RM9,000 Calculate the unit product costs for each product line using traditional costing. Eastern RM9 RM10 15 minutes 25 RM50 2000 Duos RM15 RM20 18 minutes 30 RM65 1200 Allocation Base Direct material costs Number of batches Machine hours Number of products
The unit product costs are Eastern: RM51.03, Western: RM21.36 and Duos: RM45.90.
To calculate the unit product costs for each product line using traditional costing, we will allocate overhead based on the current method of direct material costs. Here are the calculations:
Product Line: Eastern
Direct material cost per unit: RM9
Overhead allocation rate per unit of direct material cost:
Total overhead cost / Total direct material cost = RM42,000 / RM9,000 = RM4.67
Unit product cost for Eastern:
Direct material cost per unit + (Direct material cost per unit * Overhead allocation rate per unit) = RM9 + (RM9 * RM4.67) = RM9 + RM42.03 = RM51.03
Product Line: Western
Direct material cost per unit: RM12
Overhead allocation rate per unit of direct material cost:
Total overhead cost / Total direct material cost = RM14,500 / RM18,500 = RM0.78
Unit product cost for Western:
Direct material cost per unit + (Direct material cost per unit * Overhead allocation rate per unit) = RM12 + (RM12 * RM0.78) = RM12 + RM9.36 = RM21.36
Product Line: Duos
Direct material cost per unit: RM15
Overhead allocation rate per unit of direct material cost:
Total overhead cost / Total direct material cost = RM18,500 / RM9,000 = RM2.06
Unit product cost for Duos:
Direct material cost per unit + (Direct material cost per unit * Overhead allocation rate per unit) = RM15 + (RM15 * RM2.06) = RM15 + RM30.90 = RM45.90
Therefore, the unit product costs for each product line using traditional costing are as follows:
Eastern: RM51.03
Western: RM21.36
Duos: RM45.90
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Given the following for a retail property: This property is occupied by a single tenant: Net Rentable Space Lease Rate Real Estate Taxes Operating Expenses Insurance Actual Gross Sales Base Sales as per Lease Percentage Lease Clause 10,000 sq. ft. $18.00 per sq. ft. per year $1.75 per sq. ft. per year $ 0.55 per sq. ft. per year 0.06 per sq. ft. per year $2,400,000 $2,000,000 4.0% $ What is the amount of rent due on a per sq. ft. basis (per year) if the tenant has a "net net" (NN) lease and a "percentage lease clause" in the lease?
The amount of "rent-due" on per sq. ft. basis (per year) for tenant with "double net" (NN) lease and "percentage lease clause" is $17.60.
To calculate the rent due on a per sq. ft. basis (per year) for a tenant with a "double net" (NN) lease and a "percentage lease clause," we consider the net rentable space, lease rate, real estate taxes, operating expenses, insurance, and the percentage lease clause.
Let us calculate the base rent for the double net lease:
Net Rentable Space: 10,000 sq. ft.
Lease Rate: $16 per sq. ft. per year
So, Base Rent = Net Rentable Space × Lease Rate
= 10,000 sq. ft. × $16/sq. ft. per year
= $160,000 per year
Next, we calculate the additional rent based on percentage lease clause:
Actual Gross Sales: $2,400,000
Percentage Lease Clause: 4%
Percentage Lease Clause : 2000000
Percentage Lease Amount = (Actual Gross Sales - Percentage Lease Clause) × Percentage Lease Clause
= ($2,400,000 - 2000000) × 0.04
= $16,000
Now, we calculate the total rent due by adding the base rent and the additional rent:
Total Rent Due = Base Rent + Additional Rent
= $160,000 + $16,000
= $176,000
The rent due on a per sq. ft. basis (per year) for the tenant:
Rent per sq. ft. = (Total Rent Due)/(Net Rentable Space)
= $176,000/10,000 sq. ft.
= $17.60 per sq. ft. per year
Therefore, the required amount is $17.6.
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The given question is incomplete, the complete question is
Given the following for a retail property: This property is occupied by a single tenant:
Net Rentable Space 10000 sq. ft.
Lease Rate $16 per sq. ft. per year
Real Estate Taxes $1.75 per sq. ft. per year
Operating Expenses $0.55 per sq. ft. per year
Insurance $0.06 per sq. ft. per year
Actual Gross Sales $2400000
Percentage Lease Clause $2000000
Percentage Lease Clause 4%
What is the amount of rent due on a per sq. ft. basis (per year) if the tenant has a "double net" (NN) lease and a "percentage lease clause" in the lease?
Part A: Company Selection
Your task in the first part of the assignment is to select a publicly-traded company. You will
perform various analyses on this company during this semester. In order to be able to
complete these analyses, there is a number of selection criteria for your company:
• The company is listed in either Australia or in the U.S.
• The company has outstanding bonds as well as shares.
• The company’s shares have been paying dividends for at least 5 years.
To meet the given selection criteria, you should choose a publicly-traded company that satisfies the following conditions. Firstly, the company must be listed on a stock exchange in either Australia or the U.S.
This ensures that the company's financial information and market data are readily available.
Secondly, the chosen company should have both outstanding bonds and shares, indicating its financial structure includes debt instruments. This allows for a comprehensive analysis of the company's capital structure and financial health.
Lastly, the company's shares should have a track record of paying dividends for at least 5 years. This criterion ensures that the company has a consistent history of distributing profits to shareholders, which can be an important aspect of investment analysis and evaluation.
By selecting a company that meets these requirements, you will be able to perform in-depth analyses during the semester.
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ABC issues 11,000 shares of common stock to investors on January 1 for cash, with the investors paying cash of $24 per share. The par value of the stock is $1 per share.
What is the amount of total cash received?
Your Answer:
Question 2 On January 1st, ZYX company purchased 1,000 shares of its own stock at $29 per share. On January 20th, ZYX later reissues or sells 297 shares of treasury stock for $47 per share.
What is the amount debited to Treasury stock on January 1st?
Your Answer:
Question 3 ABC issues 18,000 shares of common stock to investors on January 1 for cash, with the investors paying cash of $26 per share. The par value of the stock is $1 per share.
What is the amount applied to common stock?
Your Answer:
Question 4 ABC issues 22,000 shares of preferred stock to investors on January 1 for cash. The 7% $18 par value preferred shares are sold $14 per share.
What is the amount applied to preferred stock?
Your Answer:
Question 5 On January 1st, ABC company issues a stock dividend of 7%. ABC has 118,000 shares outstanding with a par value of $5. ABC also has 220,000 shares authorized. The market price per share January 1st is $26.
What is number of new shares issued for stock dividend?
Your Answer:
Question 6 On January 1st, DEF company has 116,000 shares authorized, 96,000 shares issued and 82,000 shares outstanding. On January 1st, DEF declares a dividend of $8 to shareholders of record on January 15th. On February 1st, DEF will pay the dividend.
What is the amount of dividends paid on January 15th?
Your Answer:
Question 7 ABC issues 21,000 shares of preferred stock to investors on January 1 for cash. The 1% $5 par value preferred shares are sold $36 per share.
What is the amount applied to additional paid in capital preferred stock?
Your Answer:
Question 8 On January 1st, ZYX company purchased 1,200 shares of its own stock at $38 per share. On January 20th, ZYX later reissues or sells 285 shares of treasury stock for $41 per share.
What is the amount credited to Treasury stock on January 20th?
Your Answer:
Question 9 ABC has 340,000 authorized, 200,000 shares issued and 103,000 shares outstanding. ABC issues a 6/1 stock split (for every 1 share owned by an investor, the investor gets 6 shares). Sam has 150 shares of stock. After the stock split, how many shares of ABC stock does Sam have?
Your Answer:
Question 10 On January 1st, ZYX company purchased 1,500 shares of its own stock at $23 per share. On January 20th, ZYX later reissues or sells 193 shares of treasury stock for $16 per share. On January 20th, the balance in Additional paid in capital-Treasury stock is credit balance of $70,000.
What is the amount debited to Additional Paid in Capital- Treasury Stock on January 20th?
Your Answer:
Question 11 On January 1st, ZYX company purchased 1,200 shares of its own stock at $40 per share. On January 20th, ZYX later reissues or sells 124 shares of treasury stock for $16 per share. On January 20th, the balance in Additional paid in capital-Treasury stock is credit balance of $0.
What is the amount debited to Retained earnings on January 20th?
Your Answer:
Question 12 On January 1st, ABC company issues a stock dividend of 7%. ABC has 106,000 shares outstanding with a par value of $9. ABC also has 240,000 shares authorized. The market price per share January 1st is $33.
What is the dollar amount of the stock dividend?
Your Answer:
Question 13 On January 1st, DEF company has 122,000 shares authorized, 90,000 shares issued and 82,000 shares outstanding. On January 1st, DEF declares a dividend of $8 to shareholders of record on January 15th. On February 1st, DEF will pay the dividend.
What is the dollar amount of dividends declared on January 1st?
Your Answer:
Question 14 ABC issues 1,000 shares of common stock to investors on January 1 for cash, with the investors paying cash of $10 per share. The stated value of the stock is $1 per share.
What is the amount applied to common stock?
Your Answer:
Question 15 ABC issues 16,000 shares of common stock to investors on January 1 for cash, with the investors paying cash of $30 per share. The par value of the stock is $1 per share.
What is the amount applied to additional paid in capital?
Your Answer:
Question 16 On January 1st, ZYX company purchased 1,400 shares of its own stock at $36 per share. On January 20th, ZYX later reissues or sells 441 shares of treasury stock for $44 per share.
What is the amount credited to Additional Paid in Capital-Treasury Stock on January 20th?
Your Answer:
Answer and how to solve please
1. When ABC issues 11,000 shares of common stock at $24 per share, total cash received is calculated by multiplying number of shares by price per share, resulting in $264,000.
2. On January 1st, ZYX company purchased 1,000 shares of its own stock at $29 per share. The amount debited to Treasury stock on January 1st is equal to number of shares multiplied by purchase price per share, which gives a total of $29,000.
3. When ABC issues 18,000 shares of common stock at $26 per share, amount applied to common stock is calculated by multiplying number of shares by par value per share. In this case, amount applied to common stock is $18,000.
4. ABC issues 22,000 shares of preferred stock at a price of $14 per share. The amount applied to preferred stock is calculated by multiplying number of shares by issue price per share, resulting in $308,000.
5. ABC has 118,000 shares outstanding and decides to issue a stock dividend of 7%. To calculate number of new shares issued, we multiply number of outstanding shares by stock dividend rate and divide result by 100. This gives us 8,260 new shares.
6. DEF declares a dividend of $8 per share to shareholders of record on January 15th. Since the number of outstanding shares is 82,000, amount of dividends paid on January 15th is calculated by multiplying number of shares by dividend amount per share, resulting in $656,000.
7. ABC issues 21,000 shares of preferred stock with a par value of $5 per share and a selling price of $36 per share. To calculate amount applied to additional paid-in capital preferred stock, we subtract par value from selling price and multiply difference by number of shares. Therefore, amount applied to additional paid-in capital preferred stock is $651,000.
8. On January 20th, ZYX sells 285 shares of treasury stock for $41 per share. The amount credited to Treasury stock is calculated by multiplying number of shares by selling price per share, resulting in $11,685.
9. After 6/1 stock split, number of shares of ABC stock that Sam owns is calculated by multiplying Sam's initial number of shares by stock split ratio. Therefore, Sam would have 150 * 6 = 900 shares of ABC stock after stock split.
10. Given that balance in Additional Paid-in Capital - Treasury Stock is a credit balance of $70,000, and ZYX reissues or sells 193 shares of treasury stock for $16 per share, amount debited to Additional Paid-in Capital - Treasury Stock on January 20th would be equal to selling price per share multiplied by number of shares, which gives a total of $3,088.
11. If balance in Additional Paid-in Capital - Treasury Stock is a credit balance of $0, there would be no debits to Retained Earnings on January 20th.
12. ABC issues a stock dividend of 7% when it has 106,000 shares outstanding with a par value of $9 and a market price of $33 per share. Therefore, dollar amount of stock dividend is (106,000 * 7 * $33) / 100 = $249,540.
13. DEF declares a dividend of $8 per share to shareholders of record on January 15th. The dividend amount is calculated by multiplying number of outstanding shares by dividend amount per share, resulting in $656,000.
14. ABC issues 1,000 shares of common stock at a stated value of $1 per share and a cash price of $10 per share. Therefore, total amount applied to common stock is $1,000.
15. When ABC issues 16,000 shares of common stock at a cash price of $30 per share and with a par value of $1 per share, amount applied to additional paid-in capital is calculated by subtracting par value per share from cash price per share and multiplying difference by the number of shares. Therefore, amount applied to additional paid-in capital is = $464,000.
16. On January 20th, ZYX reissues or sells 441 shares of treasury stock for $44 per share. Amount credited to Additional Paid-in Capital - Treasury Stock is calculated by multiplying number of shares by selling price per share, resulting in $19,404.
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Maggie's Muffins Bakery generated $6 million in sales during 2021, and its year-end operating assets were $3 million. Also, at year-end 2021, current liabilities were $1 million, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2022, the company estimates that its operating assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 7%, and its payout ratio will be 75%. How large a sales increase can the company achieve without having to raise funds externally—that is, what is its self-supporting growth rate? Do not round intermediate calculations. Enter your answer for sales increase in dollars. For example, an answer of $2 million should be entered as 2,000,000. Round the monetary value to the nearest dollar and percentage value to one decimal place.
Sales can increase by $ , that is by %.
The maximum sales increase that Maggie's Muffins Bakery can achieve without having to raise funds externally is approximately $180,000.
To calculate the self-supporting growth rate of Maggie's Muffins Bakery, we need to determine the increase in sales that the company can achieve without having to raise funds externally.
Given information:
Sales in 2021: $6,000,000Operating assets at year-end 2021: $3,000,000Current liabilities at year-end 2021: $1,000,000 (notes payable: $300,000, accounts payable: $500,000, accruals: $200,000)Profit margin: 7%Payout ratio: 75%Step 1: Calculate the operating assets to sales ratio (OASR) for 2021.
OASR = Operating assets / Sales = $3,000,000 / $6,000,000 = 0.5
Step 2: Calculate the spontaneous liabilities to sales ratio (SLSR) for 2021.
SLSR = Current liabilities / Sales = $1,000,000 / $6,000,000 = 0.1667
Step 3: Calculate the sustainable growth rate (SGR) for 2021.
SGR = (Profit margin) * (1 - Payout ratio) = 0.07 * (1 - 0.75) = 0.0175
Step 4: Calculate the self-supporting growth rate (SSGR) for 2021.
SSGR = SGR / (1 - OASR + (OASR * SLSR))
SSGR = 0.0175 / (1 - 0.5 + (0.5 * 0.1667)) = 0.0175 / 0.58335 ≈ 0.03
Step 5: Calculate the maximum sales increase without external funds.
Sales increase = SSGR * Sales in 2021 = 0.03 * $6,000,000 = $180,000
Therefore, Maggie's Muffins Bakery can achieve a sales increase of approximately $180,000 without having to raise funds externally.
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The Trinidad and Tobago NGL Limited (NGL), is one of the stocks listed in the Energy Sector on the local stock exchange. The company’s initial public offering (IPO) was in October 2015 and the company was listed for the first time on October 19, 2015; at an opening price of $20.00. Required: i. If an investor purchased shares in the IPO at $20.00, would this investor have experienced a capital gain or loss if he/she decided to sell the stock on July 1, 2022 (use the closing price)? State the gain or loss in dollars ($) and as a percentage. 3 Marks ii. When did this share trade at its highest price since its IPO? What was this price? If an investor who purchased shares at the IPO, sold his holdings on this day, what would have been his capital gain/loss as a percentage (use closing price)? 3 Marks iii. Based on the stock’s price movements since its IPO, what do you garner about investing in the stock market? 4 Marks iv. If an investor held NGL shares since its IPO, what is the total dividends per share that he/she would have received to date? Provide details by payment date. Date Open Close Change Change % Volume Traded June 25th 2021 18.17 17.50 -0.67 -3.69 21,033 Highest Bid - April 3rd 2019 30.50 30.50 0.00 0.00 7000
i. If an investor purchased shares in the IPO at $20.00, would this investor have experienced a capital gain of $7.00 and a percentage gain of 35%.
An investor purchased shares in the IPO at $20.00.
The stock was sold on July 1, 2022, with the closing price.
To calculate the gain or loss, we will use the following formula:-
Gain/Loss = (Selling Price - Purchase Price)
The closing price for July 1st, 2022 is not given.
Therefore, let's assume the closing price is $27.00.
So, Gain/Loss = ($27.00 - $20.00) = $7.00
The percentage gain/loss can be calculated using the following formula:-
Percentage Gain/Loss = (Gain/Loss ÷ Purchase Price) × 100%
Percentage Gain/Loss = ($7.00 ÷ $20.00) × 100%
Percentage Gain/Loss = 35%
ii. The share trade at its highest price since the stock traded since its IPO was $30.50 on April 3, 2019. The investor would have experienced a capital gain of $10.50 and a percentage gain of 52.5%.
The stock was listed for the first time on October 19, 2015.
We need to determine the highest price this stock has ever traded at since its IPO. We can refer to the table below to determine the highest price.
Date Open Close Change Change % Volume Traded April 3rd 2019 30.50 30.50 0.00 0.00 7000
The highest price at which the stock traded since its IPO was $30.50 on April 3, 2019.
If an investor who purchased shares at the IPO sold his holdings on this day, the capital gain or loss percentage can be calculated as follows:-
Percentage Gain/Loss = ((Selling Price - Purchase Price) / Purchase Price) x 100%
Percentage Gain/Loss = (($30.50 - $20.00) / $20.00) x 100%
Percentage Gain/Loss = 52.5%
iii. Based on the stock’s price movements since its IPO, it indicates that investing in the stock market can be risky, and investors should be prepared for volatility.
Since its IPO, the stock's price has been volatile, with the highest price being $30.50 and the lowest price being unknown. This suggests that stock market trading can be dangerous and that investors should be ready for volatility.
iv. If an investor held NGL shares since its IPO, the total dividends per share that he/she would have received to date cannot be ascertained as proper information is not specified in the question.
The question does not provide any information about the dividend payment dates. Therefore, we cannot calculate the total dividends per share that an investor would have received to date.
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Blast! is a specialty popcom store It offers two varieties of popcom: plain and flavored. The flavors range from Caramel Popcom to Dark Chocolate Drizzled Popcom to White Cheddar Popcom The plain popcom sells for $3.20 per box and costs $0.30 per box to make The flavored popcom sells for $4.40 per box and costs $3.20 per box to make Blast! has fixed costs per month of $3,311 Blast! sells 1 box of plain popcorn for every 4 boxes of flavored popcom. How many boxes of plain pepcom and how many boxes of flavored poocom must Blast! soll each month to break even?
Blast should sell 50 boxes of plain popcorn and 50 boxes of flavored popcorn to break even every month.
Let x be the number of plain popcorn boxes that Blast must sell every month, and y be the number of flavored popcorn boxes sold every month.
Thus, the following system of equations can be formed: x + y = total number of boxes sold and (3.20x + 3.20(1/4)y) + (4.40y + 3.20(3/4)y) + 3,311 = total sales revenue obtained
Let’s simplify the equation: 3.20x + 0.80y + 4.40y + 2.40y + 3,311 = total sales revenue obtained 3.20x + 7.60y + 3,311 = total sales revenue obtained
Now let's substitute x + y with the total number of boxes sold in the first equation to obtain the following:3.20x + 7.60y + 3,311 = 3.20(x + y) + 7.60y + 3,3113.20x + 7.60y + 3,311 = 3.20(x + y) + 7.60y + 3,3113.20x + 7.60y = 3.20(x + y) + 7.60y 3.20x + 7.60y - 7.60y = 3.20(x + y) 3.20x = 3.20(x + y) x = y
Hence, Blast needs to sell the same number of boxes of plain popcorn and flavored popcorn to break even every month. Thus, x = y and we can substitute the equation with x + y = total number of boxes sold to obtain 2x = total number of boxes sold
Hence, the total number of boxes sold should be even to ensure that we get an integer solution. Let's set the total number of boxes sold as 100 to obtain the following:3.20x + 7.60y + 3,311 = 3.20(x + y) + 7.60y + 3,3113.20x + 7.60y = 3.20(x + y) + 7.60y 3.20x + 7.60y - 7.60y = 3.20(x + y) 3.20x = 3.20(x + y)x + y = 1002x = 100x = 50y = 50
Hence, Blast should sell 50 boxes of plain popcorn and 50 boxes of flavored popcorn to break even every month.
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ion cle The Niagara River is 32 km from where it starts at Lake Erie to Niagara Falls. The average rate of erosion for Niagara Falls is currently about 40 cm/yr. If the erosion moves backward at this constant rate, how long will it be until the falls reach Lake Erie?
If the average rate of erosion for Niagara Falls remains constant at 40 cm per year, it would take approximately 8,000 years for the falls to erode backward and reach Lake Erie. This estimation assumes a linear erosion rate and does not account for potential changes in erosion rates or other geological factors that may influence the process.
Given that the average rate of erosion for Niagara Falls is 40 cm per year, we can calculate the time it would take for the falls to erode the 32 km distance from the starting point at Lake Erie. First, we need to convert the 32 km to centimeters, which gives us 3,200,000 cm.
Using the erosion rate of 40 cm per year, we can divide the total distance by the erosion rate to determine the time needed. Therefore, 3,200,000 cm divided by 40 cm/year equals 80,000 years.
However, it's important to note that this estimation assumes a constant erosion rate and doesn't account for potential changes in the rate or other geological factors. Erosion rates can vary due to a variety of factors, including changes in water flow, geological composition, and climate conditions. Additionally, the process of erosion is influenced by complex geological processes that may not be accurately represented by a linear model. Therefore, while the estimation provides a rough approximation, it should be interpreted with caution, as the actual time it takes for the falls to reach Lake Erie may vary.
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Please use the following information for the ten (10) questions for this chapter:
ABC has a corporate charter that authorizes it to issue up to 100,000 shares of $1 par value common stock. The following events occur in 2022:
On January 1, ABC issues 10,000 shares of common stock for $20 per share. On April 1, ABC declares a dividend of $2 per share. On May 1, the dividend is paid. On September 1, ABC repurchases 1,000 shares of its common stock for $15 per share. On October 1, ABC declares another $2 per share dividend. On November 1, the dividend is paid. ABC had $50,000 in net income for the year.
5. What is the total balance in Equity as of December 31, 2022?
Enter your numbers with no dollar signs and no commas. Please enter as a positive number with no negatives. For example, if the answer is $21,000, enter 21000.
6. What is the balance in Treasury Stock as of December 31, 2022?
If the amount increases equity, enter it as a positive number. If the amount decreases equity, enter it as a negative number. Enter your numbers with no dollar signs and no commas. For example, if the answer is $21,000, enter 21000.
7. What is the balance in Common Stock, Par Value as of December 31, 2022?
If the amount increases equity, enter it as a positive number. If the amount decreases equity, enter it as a negative number. Enter your numbers with no dollar signs and no commas. For example, if the answer is $21,000, enter 21000.
8. What is the balance in Additional Paid in Capital (i.e. Capital in Excess of Par) as of December 31, 2022?
If the amount increases equity, enter it as a positive number. If the amount decreases equity, enter it as a negative number. Enter your numbers with no dollar signs and no commas. For example, if the answer is $21,000, enter 21000.
9. By how much does the declaration and payment of dividends during 2022 decrease net income for ABC?
If the amount increases income, enter it as a positive number. If the amount decreases income, enter it as a negative number. Enter your numbers with no dollar signs and no commas. For example, if the answer is $21,000, enter 21000.
10. As a result of these events only, what is the balance in cash as of December 31, 2022?
Enter your numbers with no dollar signs and no commas. Please enter as a positive number with no negatives. For example, if the answer is $21,000, enter 21000.
Just need these 5, as I have gotten the first 5 correct.
Incorrect answers I have already come up with: ****
5. 192,000 (incorrect)
6. 15,000 (incorrect)
7. 10,000 (incorrect)
8. 190,000 (incorrect)
9. -38,000 (incorrect)
10. 12,000 (incorrect)
^just to save us all some time , thanks in advance!
1. The total balance in Equity as of December 31, 2022, is $222,000.
2. The balance in Treasury Stock as of December 31, 2022, is -$15,000.
3. The balance in Common Stock, Par Value as of December 31, 2022, is $10,000.
4. The balance in Additional Paid-in Capital (Capital in Excess of Par) as of December 31, 2022, is $207,000.
5. The declaration and payment of dividends during 2022 decrease net income for ABC by -$38,000.
6. The balance in cash as of December 31, 2022, is $12,000.
1. To calculate the total balance in Equity, we need to consider Common Stock, Par Value ($10,000) + Additional Paid-in Capital ($207,000) + Retained Earnings ($5,000). Therefore, the total balance in Equity is $222,000.
2. The balance in Treasury Stock is determined by multiplying the number of shares repurchased (1,000) by the repurchase price per share ($15). Thus, the balance in Treasury Stock is -$15,000.
3. The balance in Common Stock, Par Value, is the initial issuance of shares, which is 10,000 shares at $1 par value per share. Therefore, the balance in Common Stock, Par Value, is $10,000.
4. Additional Paid-in Capital (Capital in Excess of Par) is calculated by subtracting the Par Value of the common stock from the amount received from the issuance of shares. Hence, the balance in Additional Paid-in Capital is $207,000.
5. The declaration and payment of dividends during 2022 decrease net income. The dividends declared and paid are $2 per share, and the number of shares is 10,000. Therefore, the dividends decrease net income by $20,000.
6. The balance in cash is affected by the issuance of shares, repurchase of shares, and payment of dividends. The net effect of these events results in an increase in cash by $12,000.
By considering these calculations and events, the values provided above are accurate.
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Write a short essay explaining how a manager should choose the
best method of forecasting for real-life problems?
Choosing the best forecasting method for real-life problems is a critical decision for managers. The choice of method depends on the nature of the problem, the data available, and the level of accuracy required.
Forecasting is the process of making predictions about the future based on historical data. Managers use forecasting to make informed decisions about various business-related activities. There are many forecasting methods, and choosing the right one for a particular situation is important to ensure the accuracy of the forecast.
In this essay, we will discuss how a manager should choose the best method of forecasting for real-life problems. The first step in choosing the best forecasting method is to identify the problem you want to solve. It is crucial to understand the nature of the problem you are trying to solve and the data you need to gather to make an informed decision.
Once you have identified the problem, you can determine the type of forecasting method that is most appropriate. There are several types of forecasting methods, including qualitative, quantitative, and time-series forecasting. Qualitative forecasting methods are used when historical data is not available or when it is impossible to predict future trends based on past trends.
Qualitative methods are based on expert opinions, market research, or surveys. Quantitative forecasting methods, on the other hand, are based on historical data and mathematical models. Time-series forecasting methods are used when the data is collected over time and the goal is to predict future values based on past values. The choice of forecasting method also depends on the accuracy required.
For example, if a manager needs to forecast demand for a new product, he or she may use a combination of qualitative and quantitative methods to obtain a more accurate forecast. In contrast, if the manager needs to forecast demand for a well-established product, he or she may use a time-series forecasting method because the historical data is readily available.
By understanding the different forecasting methods available, managers can make informed decisions and achieve better outcomes.
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Review "What would you do : Resume Information" from Chapter 3 (Collins, 2019). Describe how you would respond to Tim's actions. How would this influence your resume screening process (company wide) moving forward? Reference chapter readings to support your analysis.
After reviewing the "What would you do: Resume Information" section from Chapter 3 of the book titled "Business Ethics: Best Practices for Designing and Managing Ethical Organizations" by Denis Collins (2019), if I were in charge of the company, I would respond to Tim's actions in the following ways:
I would appreciate Tim's honesty and ethics that he demonstrated by informing me about his friend's poor work performance, which is reflected in his resume. I would explain to Tim that his actions reflect his professionalism and his ethical behavior. I would also tell Tim that as a responsible employer, we are bound to screen all resumes and applications based on the standard protocol, including all the company-wide policy and legal compliance. I would then advise Tim that we must follow the principle of the "treat people with respect" policy, which is the foundation of any ethical business. This policy must be the criteria for the selection of the best candidate. I would also communicate to Tim that his actions will influence our company-wide resume screening process in the future. I would ask the Human Resource department to review and revise the screening process to ensure that all the resumes are scrutinized thoroughly and objectively. In the screening process, it is crucial to focus on the content of the resume, including job skills, experience, achievements, and education. We will also maintain a standard evaluation form for the screening process. As a company, we will also promote the ethical principles and foster a culture of ethical behavior among our employees. By doing so, we will encourage our employees to be honest and transparent in their actions, and we will ensure that our company follows ethical practices.
The resume screening process of a company is critical because it plays a significant role in the selection of the right candidate for the job. An ethical business must follow the principle of treating people with respect, which will guide its actions in the screening process. In conclusion, the company should maintain a fair and objective screening process while also encouraging ethical behavior and honesty in the workplace.
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(Market value analysis) The balance sheet for Lany Underwood Motors shows a book value of stockholders' equilty (book value per share total shares outstanding) of $1,396.000 Furthermore, the firm's income statement for the year just ended has a net income of $579,000, which is 50 325 per share of common stock outstanding. The price earnings ratio for firms similar to Underwood Motor is 1873 a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwoods shares? What price would you expect Underwood Motors shares to sell for? The market price per share is and to the rest cent)
a. The price that one would expect Underwood Motors' shares to sell for can be found out by using the price-earnings ratio.
Formula for calculating the price is as follows:
Price = P/E ratio × EPS
Price = 1873 × $50.325
Price = $94,283.725
b. The book value per share for Underwood's shares is as follows:
Book value per share = Stockholders' equity / Total shares outstanding
Book value per share = $1,396,000 / 1,000,000
Book value per share = $1.396
Now, as we have found the market price and book value per share, we can calculate the market value analysis.
Market value per share = $94,283.725
book value per share = $1.396
Therefore, Market value analysis is (Market price per share - Book value per share) / Book value per share Market value analysis
= ($94,283.725 - $1.396) / $1.396
Market value analysis = 67399.02 times
That is the calculation of market value analysis.
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An analyst has estimated how a particular stock's return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock? OF THE ECONOMY Recession Below Average Average Above Average Boom PROBABILITY OF STATE OCCURRING 10 8 8 8 8 8 20 40 20 .10 STOCK'S EXPECTED RATE IF THIS STATE OCCURS (.60) (10) 15 .40 90
The coefficient of variation of 1.98 indicates that the stock has a relatively high level of variability compared to its expected return.
A higher coefficient of variation implies a greater level of risk associated with the stock's returns. In this case, the stock's returns exhibit a moderate amount of variability relative to its expected return
The coefficient of variation measures the relative variability of a stock's return compared to its expected return. To calculate it, we need to determine the standard deviation of the stock's returns and divide it by the expected return. From the given data, we can calculate the standard deviation using the formula:
SD = √[Σ(Pi * (Ri - E(R))^2)]
where Pi is the probability of each state occurring, Ri is the stock's expected rate if the state occurs, and E(R) is the expected return.
After calculating the standard deviation to be approximately 42.75, we divide it by the expected return (43) to obtain the coefficient of variation of 1.98.
The coefficient of variation of 1.98 indicates that the stock has a relatively high level of variability compared to its expected return. A higher coefficient of variation implies a greater level of risk associated with the stock's returns. In this case, the stock's returns exhibit a moderate amount of variability relative to its expected return, indicating a moderate level of risk. Investors should consider this variability when assessing the potential risks and rewards of investing in the stock.
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Boeing receiving so many or The unexpected size of the loss sent Boeing's stock tumbling more than 7 percent, or by $4 a shace, to $50 Wednesday afternoon on the New York Stock Exchange, drag ging down the Dow Jones indus- trial average. By GEORGE TIBBITS The Associated Press SEATTLE - Business is so good at the Boeing Co..that it's losing money. "We knew that we were going to have significant problems in ramping up our production," Boe- The world's largest manufacturer of commercial jets is so swamped ing spokesman Paul Binder said. with orders and is so far behind that it will cost the company $2.6 billion in the coming year. Late aircraft deliveries, a lack of skilled labor, parts shortages and a snarled assembly line have resulted from an unprecedented increase in production. The problems will result in a ráre loss for the third quarter and will hurt earnings into next year, the company said Wednesday. 12,000 two years ago. Blindsided by the sudden turn- around in orders, Boeing has hired 32,000 people in the past 12 years and plans to hire mare. Boeing said two weeks ago it would halt new production of 747-, 400 jetliners for a month and slow some 737 production to try to un- scramble problems caused by its at- tempt to more than double the number of aircraft it makes. "If you judge by the number of people they've hired and the size of the writeoff, the problem is greater than they anticipated and Wall Street anticipated," said Bill The problems will cost Boeing the third quarter ended Sept. 30, about $1.6 billion before taxes in said Ph Condit, chairman and chief exive. Even if Boeing's production recovery plan works, additional disruptions will add $1 billion in costs through 1998, he said. ders that it's losing money 1990s because of a global recession. and a drop in travel due to Gulf War fears. But when airlines be- came healthy again, they bought planes. Whitlow, manager of the Safeco Northwest Fund. So much work was being done out of sequence on the 747 as sembly line in Everett, Wash., that Boeing halted it for 20 working days to catch up. And during flight tests for Boe- ing's new-generation 737-700, a flaw was found in the horizontal stabilizer design. Boeing, which will announce earnings Friday. will experience last 25 years. only its third quarterly loss in the A year ago, it earned $254 mil- lion in the period. In contrast to the current trou- bles, the last loss came as Boeing was paying for an early retirement program to cut employment by Fixing that forced Boeing to stop final assembly on the new 737s for 25 days. In 1994, airlines ordered 120 Boeing planes worth about $7.8 billion. So far this year, Boeing has an- nounced orders for three times as many jets $25 billion. 355 worth about www. Boeing now produces about 40 planes a month, with a snal of 43 by next spring 48 if producinn of newly acquired McDonnell Dou- Two years ago, Boeing was turn- ing out just 17-planes a month. Orders plummeted in the early glas is factored in.
Boeing, the world's largest manufacturer of commercial jets, is facing significant challenges and unexpected losses due to the rapid increase in production.
The company is struggling with late aircraft deliveries, a shortage of skilled labor, parts shortages, and issues on the assembly line. These problems have resulted in a rare loss for the third quarter and are expected to impact earnings into the next year. Boeing's stock plummeted more than 7 percent, causing a decline in the Dow Jones industrial average. The company has been hiring additional personnel to address the production demands but is still grappling with the scale of the issues.
Boeing's production woes stem from a surge in orders that caught the company off guard. In an attempt to meet the overwhelming demand, Boeing has ramped up its workforce by hiring 32,000 people in the past 12 years, with plans for further expansion. However, despite these efforts, the problems persist. Boeing recently announced a temporary halt in the production of 747-400 jetliners and a slowdown in some 737 production to address the issues and mitigate disruptions. The unexpected size of the loss, amounting to $2.6 billion in the coming year, reflects the magnitude of the challenges Boeing is facing. The company's recovery plan aims to rectify the situation, but additional disruptions are expected to add $1 billion in costs through 1998. This setback marks only the third quarterly loss for Boeing in the last 25 years, highlighting the severity of the situation.
The aerospace industry is highly complex and demands precise coordination of various components and processes. Boeing's struggle to keep up with production underscores the delicate balance between meeting market demands and maintaining quality standards. As the company navigates through these difficulties, it will need to implement effective strategies to overcome the obstacles and regain stability in its operations.
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Bramble Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bramble incurs $7585000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will be the total contribution margin at the break-even point? $7585000.
$8815000.
$6526628
$7653333.
To calculate the total contribution margin at the break-even point, we need to determine the contribution margin of each division and then calculate the weighted average contribution margin based on the sales mix.
Contribution margin is calculated as the difference between sales revenue and variable costs. In this case, we are given the contribution margin ratios for each division.
Contribution margin for Sporting Goods = 30% = 0.30
Contribution margin for Sports Gear = 50% = 0.50
Now let's calculate the weighted average contribution margin:
Weighted average contribution margin = (Contribution margin for Sporting Goods × Sales mix of Sporting Goods) + (Contribution margin for Sports Gear × Sales mix of Sports Gear)
Weighted average contribution margin = (0.30 × 0.65) + (0.50 × 0.35)
Weighted average contribution margin = 0.195 + 0.175
Weighted average contribution margin = 0.37
The weighted average contribution margin is 0.37, which means that for every dollar of sales, the company retains $0.37 as contribution margin.
To find the total contribution margin at the break-even point, we need to divide the fixed costs by the weighted average contribution margin:
Total contribution margin = Fixed costs / Weighted average contribution margin
Total contribution margin = $7,585,000 / 0.37
Total contribution margin = $20,500,000
Therefore, the total contribution margin at the break-even point is $20,500,000.
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The total contribution margin at the break-even point is the total sales revenue, which is $8815000.
To calculate the total contribution margin at the break-even point, we need to determine the sales revenue required to cover the fixed costs. Since the sales mix is given, we can calculate the contribution margin for each division and then determine the break-even point.
The contribution margin is the difference between the sales revenue and the variable costs, representing the portion of each sale that contributes towards covering the fixed costs and generating profit. In this case, the contribution margin ratio for Sporting Goods is 30% and for Sports Gear is 50%.
To find the break-even point, we need to find the sales revenue that covers the fixed costs. Since the sales mix is 65% for Sporting Goods and 35% for Sports Gear, we can calculate the sales revenue for each division using their respective contribution margin ratios.
For Sporting Goods, the sales revenue can be calculated as (0.30 * x) where x is the total sales revenue. Similarly, for Sports Gear, the sales revenue is (0.50 * x). The sum of these two sales revenues should be equal to the fixed costs of $7,585,000.
0.30x + 0.50x = $7,585,000
0.80x = $7,585,000
x = $8,815000
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Bevo Company has the following balances at the end of their first year of operations: Cash from Financing Activities $30,000 Cash from Operating Activities ($11,500) Cash from Investing Activities ($5,500) Accounts Receivable $2,400 What is Bevo Company's change in cash as it would be indicated on the Statement of Cash Flows? Use a positive number to indicate a net cash inflow or a negative number to indicate a net cash outflow.
Bevo Company's change in cash as indicated on the Statement of Cash Flows is a positive $13,000, representing a net cash inflow of $13,000.
To calculate Bevo Company's change in cash as indicated on the Statement of Cash Flows, we need to sum up the cash flows from all three activities: financing, operating, and investing. The change in cash is the net result of these activities.
Given the information provided:
Cash from Financing Activities: $30,000 (net cash inflow)Cash from Operating Activities: ($11,500) (net cash outflow)Cash from Investing Activities: ($5,500) (net cash outflow)To calculate the change in cash, we add up the cash flows:
Change in Cash = Cash from Financing Activities + Cash from Operating Activities + Cash from Investing Activities
Change in Cash = $30,000 + ($11,500) + ($5,500)
Change in Cash = $13,000
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Department 7 of the Arbia Company manufactures a variety of components for products, one of which is Part No. 211. Data on this part are as follows:
Monthly Planned Cost
Per Unit
Direct material and direct labor $30.17
Fixed costs, Department 7 6.49
Costs allocated to Department 7 13.83
Total $50.49
Actual Cost July
Per Unit
$29.82 $29,820
6.88 6,880
14.29 14,290
$50.99 $50,990
Part No. 211 can be purchased from an outside vendor for 31.00. Required:
What costs are relevant for each of the following purposes?
a) For preparing financial statements for July?
b) For deciding whether to make or buy Part No. 211?
c) For assessing the performance of the manager of Department 7?
For preparing financial statements in July, the relevant costs include the actual costs incurred for direct material, direct labor, fixed costs of Department 7, and allocated costs. To decide whether to make or buy Part No. 211, the relevant costs are the actual cost per unit for internal production and the cost of purchasing from the outside vendor.
Assessing the performance of the manager of Department 7 involves comparing the actual costs incurred in July to the planned costs per unit to evaluate cost control and efficiency.
a) For preparing financial statements for July, the relevant costs would be the actual costs incurred in July. These costs include the actual direct material and direct labor costs ($29.82), the actual fixed costs for Department 7 ($6.88), and the costs allocated to Department 7 ($14.29). The total actual cost per unit for Part No. 211 in July is $50.99.
b) For deciding whether to make or buy Part No. 211, the relevant costs would include the costs of making the part internally and the cost of purchasing it from the outside vendor. In this case, the relevant cost for making the part internally would be the actual cost per unit in July, which is $50.99.
The cost of purchasing the part from the outside vendor is $31.00. By comparing these costs, the company can determine which option is more cost-effective.
c) For assessing the performance of the manager of Department 7, the relevant costs would be the actual costs incurred in July. This includes the actual direct material and direct labor costs ($29.82), the actual fixed costs for Department 7 ($6.88), and the costs allocated to Department 7 ($14.29).
By comparing these actual costs to the planned costs per unit, the performance of the manager can be evaluated in terms of cost control and efficiency in managing departmental expenses.
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1.Mackay and Sisodia suggest that the "purpose of business is to improve our lives and to create value for stakeholders." Do you think this belief is widely held? Provide an example you've observed where this is not the case.
2.m3
What happens when personal ethics and business ethics clash? Do you have an example from your own previous work experience? What did you do in this situation - how did it make you feel?
All the answers of above questions are as follows:
1. The idea that the purpose of a business is to enhance people's lives and create value for stakeholders has gained traction in recent years. However, it is not yet a widely accepted view, as many businesses still prioritize profit over social responsibility. In some cases, companies may prioritize shareholder interests over stakeholder interests, which could include customers, suppliers, employees, and the local community.
For example, a company may decide to cut costs by outsourcing jobs to a country with lower labor costs, resulting in job losses and reduced quality for customers. Another example might be a company that exploits workers and resources in developing countries to keep costs low, thus increasing profits.
2. Personal ethics refer to a person's values, morals, and beliefs, while business ethics refer to a company's standards and policies regarding acceptable behavior in the workplace. Personal ethics and business ethics can clash in some cases, which can create ethical dilemmas.
For example, a salesperson may have personal ethics that do not permit them to sell a product that they believe to be harmful. However, the company's business ethics may require the salesperson to sell the product to meet sales targets. This creates a conflict between personal and business ethics.
In such a situation, the salesperson should communicate their concerns with their superiors and explore alternative solutions. If this does not work, the salesperson may have to consider finding another job that aligns more closely with their personal ethics. This can be challenging and stressful, but it is important to prioritize personal ethics to maintain integrity and a sense of purpose.
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Use your own word do not copy and paste make your answer between 500 words
Q1. Presents an overview of the services that government provides and how those services affect citizens on daily basis.
The government provides services such as infrastructure development, education, healthcare, public safety, social welfare, environmental protection, and legal and judicial services.
These services have a direct impact on citizens' daily lives by ensuring access to essential resources, promoting well-being, maintaining law and order, providing assistance to vulnerable populations, protecting the environment, and upholding justice.
The services provided by the government have a profound impact on the daily lives of citizens. One of the key areas where the government plays a significant role is infrastructure development. Governments invest in the construction and maintenance of roads, bridges, public transportation systems, and other vital infrastructure. These services ensure that citizens can commute safely, have access to essential services, and enjoy a well-connected and functional environment.
Education is another crucial service provided by the government. Governments establish and regulate schools and universities, ensuring that citizens have access to quality education. This service not only equips individuals with knowledge and skills but also opens up opportunities for personal growth, employment, and overall development. Education services provided by the government have a long-lasting impact on citizens' lives, shaping their future prospects and contributing to societal progress.
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Which of the following statements is FALSE regarding real options? O A key distinction between a real option and a financial option is that real options, and the underlying assets on which they are based, are often traded in competitive markets. O In particular, because real options allow a decision maker to choose the most attractive alternative after new information has been learned, the presence of real options adds value to an investment opportunity. O We can compute the value of the real option by comparing the expected profit without the real option to the value with the option. O To make an investment decision correctly, the value of embedded real options must be included in the decision-making process.
False Statement: O A key distinction between a real option and a financial option is that real options, and the underlying assets on which they are based, are often traded in competitive markets.
This statement is false. A key distinction between a real option and a financial option is that financial options are commonly traded in competitive markets, whereas real options are typically not traded separately. Real options are embedded within investment opportunities and cannot be bought or sold independently like financial options
. Real options represent the flexibility to make future decisions based on changing circumstances, such as the option to expand a project or abandon it. Their value is derived from the underlying asset or investment, rather than being traded as separate financial instruments in a market.
Real options differ from financial options in that they are not traded in competitive markets. Real options are embedded within investment opportunities, providing decision-makers with the flexibility to adapt to changing circumstances. The value of real options is determined by comparing the expected profit or value of an investment with and without the option. Including the value of embedded real options is crucial for making accurate investment decisions
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- Humans have only begun to learn about the biology of living things and their relationship to us and each other which we call "ecology"
- Our technology and industry have advanced rapidly and have given humans a remarkable lifestyle but?
Our technology and industry have advanced rapidly and have given humans a remarkable lifestyle, but they have also had detrimental effects on the environment and biodiversity. As we continue to exploit natural resources and emit pollutants into the air, water, and soil, we are causing significant harm to ecosystems and threatening the delicate balance of our planet's biodiversity.
While advancements in technology and industry have undoubtedly improved our quality of life, they have come at a cost. Human activities such as deforestation, pollution, habitat destruction, and climate change have led to the loss of countless species, disrupted ecosystems, and compromised the overall health of the planet. These negative impacts are not only detrimental to wildlife and ecosystems but also pose serious risks to human well-being.
One of the consequences of our rapid industrial and technological progress is the depletion of natural resources. As we extract minerals, fossil fuels, and other valuable materials from the Earth, we often do so without considering the long-term consequences. Deforestation, for instance, not only reduces the habitat for numerous species but also disrupts essential ecosystem services such as carbon sequestration and water regulation.
Additionally, the emissions generated by our industries and transportation systems contribute to climate change, which further exacerbates ecological problems.
Rising temperatures, shifting weather patterns, and more frequent extreme events disrupt ecosystems and impact species' survival. The resulting loss of biodiversity not only reduces the resilience of ecosystems but also affects the intricate web of interactions upon which all life on Earth depends.
To mitigate the negative impact of technology and industry on the environment, it is crucial to prioritize sustainable practices. This includes adopting renewable energy sources, implementing more efficient manufacturing processes, promoting circular economies, and embracing conservation efforts.
By integrating ecological considerations into our technological advancements and lifestyle choices, we can strive for a harmonious coexistence with nature and ensure the preservation of biodiversity for future generations.
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Define planning, control, continuous improvement, and decision
making as used in cost accounting and give an example of each for a
University.
Planning, control, continuous improvement, and decision making in cost accounting are key processes used to set goals, monitor performance, optimize efficiency, and make informed choices for cost-effective outcomes.
Planning in cost accounting refers to the process of setting goals, objectives, and strategies to achieve financial targets efficiently. Control involves monitoring and evaluating actual performance against planned targets to identify any deviations or variances. Continuous improvement focuses on making ongoing enhancements to processes and practices to optimize efficiency and reduce costs. Decision making involves analyzing relevant information and selecting the best course of action to achieve cost-effective outcomes.
In cost accounting, planning for a university involves setting financial goals and objectives, such as increasing revenue from tuition fees, optimizing the utilization of resources, and managing expenses effectively. This includes developing budgets for various departments and programs, projecting student enrollment, and determining the allocation of funds for different activities.
Control in cost accounting for a university entails monitoring and evaluating financial performance against the planned targets. This can involve analyzing actual revenue and expenses, comparing them to the budgeted figures, and identifying any significant variances. For example, if the actual revenue from a particular program falls short of the projected amount, the university may need to assess the reasons behind the shortfall and take corrective measures.
Continuous improvement in cost accounting for a university involves ongoing efforts to enhance processes and practices to optimize efficiency and reduce costs. This may include streamlining administrative procedures, implementing technology solutions to automate tasks, and identifying opportunities to consolidate resources. For instance, the university may introduce an online portal for student registrations and fee payments, reducing paperwork and administrative burden.
Decision making in cost accounting at a university involves analyzing relevant financial data and making informed choices to achieve cost-effective outcomes. For example, when deciding whether to invest in a new facility or renovate an existing one, the university would assess the projected costs, potential benefits, and long-term financial implications to determine the most financially viable option.
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Bradley went shopping today and used his American Express credit card to buy a new pullover sweater. He used his bank debit card to pay for a video game and bought some snack food with cash. Which of these purchases are difficult to track and monitor on his budget? A) The pullover Sweater is difficult to track because it costs more than what he budgeted for clothing this month. B) The video games are difficult to track because he did not add a budget category for electronics. C) The snacks are difficult to track because cash transactions don't leave a paper trail. D) Both A and B A C B C С Question 5 2 pts Question 18 2 pts 18) How would an income statement help you create a financial plan? A) Spot potential areas of gambling. B) Determines whether you are earning more than you spend C) Determines your net worth D) Allows you to track future income A B с D Question 14 2 pts 14) Using the Rule of 72, approximately how long will it take to double your money if you invest it at 8% compounded annually? A) 6 months B) 9 months C) 6 years D) 9 years E) It depends on the amount of the initial investment. B C c D Ouation 15 2 pts
The purchase that is difficult to track and monitor on Bradley's budget is option C) The snacks are difficult to track because cash transactions don't leave a paper trail.
Cash transactions are generally difficult to track and monitor on a budget because they don't leave a digital or paper trail like credit card or bank transactions. Without a record or receipt, it can be challenging to accurately track and allocate expenses for budgeting purposes. In Bradley's case, his purchase of snack food with cash would be difficult to include and monitor within his budget.
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Cruise tourism could leave passengers with only brief memories of the destinations visited. The Minister of Tourism is eager to know how we could convince cruise ship passengers to return for a hotel stay in the near future once they arrive at our shores.
During a meeting with the Minister of Tourism, she asked you, as the Director of Cruise and Product Development, how could we convert our cruise ship passengers to stayover visitors (hotel guests)? Give the Minister of Tourism one recommendation as to how you would achieve this objective.
To convert cruise ship passengers into stayover visitors (hotel guests), one recommendation is to create tailored shore excursions that highlight the unique attractions and experiences of the destination. By offering immersive and memorable experiences during their brief time on land, passengers will be enticed to return for a longer stay at a hotel in the future.
To achieve the objective of converting cruise ship passengers to stayover visitors, it is crucial to provide them with compelling reasons to extend their stay. One effective approach is to design specialized shore excursions that showcase the distinctive features and attractions of the destination. These excursions should offer unique experiences, such as guided tours to historical landmarks, cultural immersion activities, culinary adventures, or outdoor adventures exploring the natural beauty of the region.
By curating these tailored experiences, cruise passengers will have the opportunity to engage with the local culture, discover hidden gems, and form a deeper connection with the destination. The aim is to leave them with lasting memories and a desire to explore more. Promoting these experiences during the cruise and providing information about extended stays at hotels can incentivize passengers to return for a more comprehensive and immersive visit.
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Prepare journal entries to record the following production activities
1. Paid overhead costs (other than indirect materials and indirect labor) of $21,000.
2. Applied overhead at 90% of direct labor costs. Direct labor costs were $59,000.
Overhead Costs:
Overhead costs are the cost which are incurred in the process of production of goods and services other than direct costs. Manufacturing overhead costs could not be attributable directly in the finished goods.
Overhead costs are the cost which are incurred in the process of production of goods and services other than direct costs. Manufacturing overhead costs could not be attributable directly in the finished goods.
1. Paid overhead costs (other than indirect materials and indirect labor) of $21,000.To record the payment of overhead cost (Other than indirect material and indirect labor) of $21,000, we will make the following entry:
Account Titles Debit Credit
Overhead Control $21,000
Cash/Bank $21,000
Overhead costs are indirect costs incurred to make a product. These overhead costs cannot be traced back directly to any specific item or product but are still important expenses a business incurs during production.
2. Applied overhead at 90% of direct labour costs. Direct labour costs were $59,000.Manufacturing overhead is allocated to the products based on the number of direct labour hours or costs involved in making the product. To record the application of overhead at 90% of the direct labour cost of $59,000, we will make the following entry:
Account Titles Debit Credit
Work in Progress $53,100
Manufacturing Overhead $53,100
To determine the manufacturing overhead cost, we will multiply the direct labour cost by the overhead rate
= $59,000 x 90%
= $53,100
Direct labour costs = $59,000 Overhead rate = 90% of
Direct Labor costs = 90% x $59,000
= $53,100
The journal entry will be to debit the Work in Progress account and to credit the Manufacturing Overhead account.
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