A).Total mixing machine time required are 33,375 minutes B)Product X: = $8.10 per mixing minute Product Y: = $10.63 per mixing minute Product Z: = $6.27 per mixing minute C) company be willing to pay $637.80 as selling price
The company should be willing to pay up to $637.80 for one additional hour of mixing machine time if they have already made the best use of the existing mixing machine capacity.
a. To calculate the total minutes of mixing machine time required to satisfy the demand for all three products, we multiply the demand for each product by the mixing minutes per unit and sum them up:
Product X: 1,750 units * 2.5 minutes per unit = 4,375 minutes Product Y: 3,500 units * 4.0 minutes per unit = 14,000 minutes Product Z: 3,000 units * 5.0 minutes per unit = 15,000 minutesTotal mixing machine time required = 4,375 minutes + 14,000 minutes + 15,000 minutes = 33,375 minutes
b. To determine how much of each product should be produced to maximize net operating income, we can use the concept of contribution margin per mixing minute.
The contribution margin per mixing minute is calculated by subtracting the variable costs per unit from the selling price per unit and dividing by the mixing minutes per unit:
Product X: ($80 - $28 - $14 - $3.50) / 2.5 = $8.10 per mixing minute Product Y: ($85 - $26 - $13 - $5.50) / 4.0 = $10.63 per mixing minute Product Z: ($79 - $27 - $12 - $6.75) / 5.0 = $6.27 per mixing minute
To maximize net operating income, we should produce more of the product with the highest contribution margin per mixing minute. In this case, that would be Product Y.
Let's assume we produce "y" units of Product Y. To find the number of units for the other products, we can use the ratios of their mixing minutes per unit to the mixing minutes per unit of Product Y: Product X: (2.5 / 4.0) * "y" Product Z: (5.0 / 4.0) * "y"
c. To determine the value the company should be willing to pay for one additional hour of mixing machine time, we need to calculate the contribution margin per mixing minute for the last unit produced:
Product Y: ($85 - $26 - $13 - $5.50) / 4.0 = $10.63 per mixing minute There are 60 minutes in an hour, so the contribution margin per hour of mixing machine time for Product Y is $10.63 * 60 = $637.80.
Therefore, the company should be willing to pay up to $637.80 for one additional hour of mixing machine time if they have already made the best use of the existing mixing machine capacity.
To know about selling price refer:
https://brainly.com/question/27796445
#SPJ11
Scenario H001 The University of Eastern Jamaica (UEJ) is working on its TWO (2) year HRM strategy. The university should be implementing a Human Resource Information System as well as using technology-enhanced processes to better serve the employees. There are other topical issues such as Data Protection, Sexual Harassment, Occupation Health, and Safety laws. The university wants to have high staff retention and attract the best talents.
1. Develop a THREE (3) page HRM strategy for the University of Eastern Jamaica based on the scenario given above.
University of Eastern Jamaica can develop an effective HRM strategy by implementing a HRIS, addressing topical issues, and focusing on talent attraction and retention.
How can the University of Eastern Jamaica develop an effective HRM strategy?The University of Eastern Jamaica can develop an effective HRM strategy by focusing on several key areas. Firstly, the implementation of a Human Resource Information System (HRIS) will streamline and automate HR processes, providing efficient access to employee data and enhancing communication and decision-making.
In addition to HRIS implementation, the university should prioritize addressing topical issues such as data protection, sexual harassment, and occupational health and safety laws. Developing clear policies and procedures, conducting regular training and awareness programs, and establishing a supportive and inclusive work environment will contribute to employee satisfaction and well-being.
Read more about HRM strategy
brainly.com/question/31317901
#SPJ4
Rolls-Royce and Jaguar Land Rover borrowed $2 billion to purchase new manufacturing equipment. Which factor of production describes the bank loan?
a. Physical resources
b. Entrepreneurs
c. Capital
d. Human resources
e. Information resources
The factor of production that describes the bank loan in the Rolls-Royce and Jaguar Land Rover scenario is the capital. Long answer:The factors of production are the basic resources required to produce goods and services. They are often referred to as economic inputs or production inputs.
The factors of production include natural resources, human resources, capital goods, and entrepreneurship.The bank loan in the Rolls-Royce and Jaguar Land Rover scenario can be categorized as a capital good. Capital goods are the machines, tools, and buildings that are used in the production of goods and services.
Capital is an essential factor of production because it allows companies to invest in the tools, machines, and buildings they need to produce goods and services. Without capital, companies would be unable to acquire the necessary resources to produce the products that we use every day. Therefore, the bank loan used by Rolls-Royce and Jaguar Land Rover is an example of the capital factor of production.
To know more about production,visit:-
https://brainly.com/question/5134350
#SPJ11
A company currently hasva solvency rayio of 2x. It has budgeted a growth of 25 %. What should be the profit margin such that the solvency ratio doesn't fall below 1.75x. You can assume the capital required as 20% of premium. Ignore taxes.
To maintain a solvency ratio of 1.75x after a 25% growth, the company needs to ensure that its profit margin is at least (1.75/2) x (1 - 0.25) = 0.875, or 87.5%.
The solvency ratio is calculated by dividing total assets by total liabilities, indicating the company's ability to meet its long-term obligations. With a solvency ratio of 2x initially, the company has a strong financial position.
However, to sustain this ratio after the growth, the profit margin must be sufficient to cover the increased capital requirements and maintain a healthy solvency position. By aiming for a profit margin of at least 87.5%, the company can ensure its solvency ratio doesn't fall below the desired level.
To know more about solvency,
https://brainly.com/question/29418170#
#SPJ11
Authorized and available shares Aspin Corporation's chater authorizes issuanco of 2,700,000 shares of common stock. Currently, 1,300,000 sharos aro outstanding, and 100,000 shares are being held as treasury stock. The firm wishes to raite $09,000,000 for a plant expansion. Discussions with its investinent bsrikers indicale that the sale of new common stock will net the firm $55 per share. a. What is the maximum number of new shares of common stock that the firm can sell without roceiving further authorization from sharehoiders? b. Judging by the data given and your finding in part a, do you think the fim will be able to raise the needed funds without roceiving further authorization? c. What must the firm do to obtain aushorization to issue more than the number of shares found in part a? a. The mavirnum number of new shares of common stock that the firm can sell without receiving further authorization is: thares. (Round to the noarest whole number.)
a. The maximum number of new shares of common stock that the firm can sell without receiving further authorization from shareholders is 1,300,000 shares.
b. Judging by the data given and the finding in part a, the firm will be able to raise the needed funds without receiving further authorization.
c. To obtain authorization to issue more than the number of shares found in part a, the firm would need to consult and seek approval from shareholders.
To calculate the maximum number of new shares of common stock that the firm can sell without receiving further authorization from shareholders, we need to consider the available shares. Here's the calculation:
Given:
Authorized shares = 2,700,000Outstanding shares = 1,300,000Treasury shares = 100,000Calculating the available shares as follows:
Available shares = Authorized shares - Outstanding shares - Treasury shares
Available shares = 2,700,000 - 1,300,000 - 100,000
Available shares = 1,300,000
Therefore, the maximum number of new shares of common stock that the firm can sell without receiving further authorization is 1,300,000 shares.
Part a: The maximum number of new shares of common stock that the firm can sell without receiving further authorization is 1,300,000 shares.
Part b: To determine if the firm can raise the needed funds without receiving further authorization, we need to calculate the total funds raised from selling the maximum number of shares.
Total funds raised = Number of new shares * Net price per share
Total funds raised = 1,300,000 * $55
Total funds raised = $71,500,000
Since the total funds raised ($71,500,000) exceed the needed funds for the plant expansion ($9,000,000), the firm will be able to raise the required funds without receiving further authorization.
Part c: The firm would need to seek further authorization if they wish to issue more shares than the maximum calculated in part a (1,300,000 shares). Additional authorization can be obtained through a shareholders' meeting or by following the legal procedures outlined in the company's bylaws and applicable regulations.
The maximum number of new shares of common stock that the firm can sell without receiving further authorization is 1,300,000 shares.
Learn more about common stock here:
https://brainly.com/question/11453024
#SPJ4
Your question is incomplete; most probably, your complete question is this:
Authorized and available shares Aspin Corporation's charter authorizes issuance of 2,700,000 shares of common stock. Currently, 1,300,000 shares are outstanding, and 100,000 shares are being held as treasury stock. The firm wishes to raise $09,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $55 per share.
a. What is the maximum number of new shares of common stock that the firm can sell without receiving further authorization from shareholders?
b. Judging by the data given and your finding in part a, do you think the firm will be able to raise the needed funds without receiving further authorization?
c. What must the firm do to obtain authorization to issue more than the number of shares found in part a?
The maximum number of new shares of common stock that the firm can sell without receiving further authorization is......... shares (Round to the nearest whole number)
In calculating the break-even point for a multi-product company, which of the following assumptions are commonly made? 1) Sales volume equals production volume 2) Variable expenses are constant per unit. 3) A given sales mix is maintained for all volume changes.
The commonly made assumptions in calculating the break-even point for a multi-product company are:
1) Sales volume equals production volume
2) Variable expenses are constant per unit
3) A given sales mix is maintained for all volume changes.
The first assumption, that sales volume equals production volume, implies that all units produced are sold. This assumption simplifies the calculation by assuming that there is no inventory buildup or depletion. It assumes that the company is able to sell everything it produces, which may not always be the case in reality.
The second assumption, that variable expenses are constant per unit, assumes that the variable costs incurred in producing each unit remain constant regardless of the production volume. This assumption allows for easier calculation of the contribution margin per unit and simplifies the analysis by assuming that there are no economies of scale or other factors that may affect variable costs.
The third assumption, that a given sales mix is maintained for all volume changes, assumes that the relative proportion of each product sold remains constant regardless of changes in the overall sales volume. This assumption allows for a simplified analysis by assuming that the product mix does not change over time. However, in reality, changes in volume may affect the sales mix due to varying customer preferences or market conditions.
Overall, these assumptions provide a simplified framework for calculating the break-even point in a multi-product company. However, it's important to recognize that these assumptions may not hold true in all situations, and adjustments may be needed to account for real-world complexities and variations.
Learn more about Break-even point
brainly.com/question/32507413
#SPJ11
Pending purchase orders, if ignored, can cause excess inventory Select one: True False EOQ expects a known constant demand and MRP systems often deal with unknown and variable demand Select one: True or false
Pending purchase orders, if ignored, can cause excess inventory: True.
EOQ expects a known constant demand and MRP systems often deal with unknown and variable demand: False.
Ignoring pending purchase orders means that the expected incoming inventory is not accounted for, which can lead to overstocking and excess inventory levels. Purchase orders are typically placed to replenish inventory and fulfill customer demand, so disregarding them can disrupt the supply chain and result in imbalances between supply and demand.
EOQ (Economic Order Quantity) assumes a known constant demand, meaning that the demand for a product remains consistent over time. On the other hand, MRP (Material Requirements Planning) systems are designed to handle unknown and variable demand. MRP systems use demand forecasting and other techniques to anticipate and plan for demand fluctuations, ensuring that the right amount of materials and products are available at the right time. These systems consider factors such as customer orders, production schedules, and lead times to adjust inventory levels and production quantities accordingly, accommodating the variability in demand that is common in many industries.
To learn more about Economic Order Quantity, here
https://brainly.com/question/28347878
#SPJ4
Susan's Clothing Shop, Inc. reports operating income of $420,000 and interest expense of $34,600. The average common stockholders' equity during the year was $54,000. Assets have a balance of $189,000, current liabilities are $44,000 and long−term liabilities are $45,000.
What is the debt ratio? (Round your final answer to two decimal places.)
Question content area bottom
Part 1
A. 0.47
B. 0.21
C. 0.29
D. 0.45
The debt ratio is approximately 0.47.The correct answer is A. 0.47.
To calculate the debt ratio, we need to find the total liabilities and divide it by the total assets.
Total liabilities can be calculated by adding the current liabilities and long-term liabilities:
Total Liabilities = Current Liabilities + Long-term Liabilities
Total Liabilities = $44,000 + $45,000
Total Liabilities = $89,000
Now we can calculate the debt ratio:
Debt Ratio = Total Liabilities / Total Assets
Debt Ratio = $89,000 / $189,000
Using a calculator, we can find the debt ratio:
Debt Ratio ≈ 0.4706
Rounded to two decimal places, the debt ratio is approximately 0.47.
Therefore, the correct answer is A. 0.47.
Know more about Debt Ratio here,
https://brainly.com/question/11249578
#SPJ11
Variance Analysis. The June idle capacity variance was zero, and the spending variance was $600, unfavorable. The July idle capacity variance was $800, unfavorable, and the spending variance was zero. June overhead was $7,000 for an output of 800 tons, while July overhead was $5,600, and output was 600 tons. In August, output was 900 tons and actual factory overhead was $7,100.
Required: Prepare a columnar analysis, indicating actual, budget allowance, applied, total variance, spending variance, and idle capacity variance for each month.
The total variance was an unfavorable $25, and the idle capacity variance was a favorable $375.
A columnar analysis that indicates actual, budget allowance, applied, total variance, spending variance, and idle capacity variance for each month is given below:
June July August
Output (tons) 800 600 900
Factory overhead ($) (7000) (5600) 7100
Budget allowance ($) (8750) (5250) 7875
Applied overhead ($) (7000) (5600) 7900
Total variance ($) (-750) (-350) (-25)
Idle capacity variance($)-0 (800) (375)
Spending variance ($ )(-600) 0 (-350)
A variance analysis is a tool that compares actual results to budgeted results in order to determine the reasons for differences in results. Variance analysis is a critical tool for financial management, and it aids in the identification of areas that require further attention.
The given table demonstrates a columnar analysis of variance by showing actual results, budget allowances, applied overhead, total variance, idle capacity variance, and spending variance for each month, June, July, and August.
In June, the idle capacity variance was zero, while the spending variance was $600 unfavorable. In July, the idle capacity variance was $800 unfavorable, while the spending variance was zero.
Finally, in August, the output was 900 tons and the actual factory overhead was $7,100.
Know more about the total variance
https://brainly.com/question/29765393
#SPJ11
Question 6 0/3 pts Fox news is a cross platform media giant with department range from newspaper, movie, radio, TV channels and many more. Therefore, to be able to produce entertainment according to the schedule and meet the expectation of the audience it is hard job. There are those who says one should use qualitative approach and create the best show possible one at a time. What do you think? Do you agree? Please state your reason.
I agree that using a qualitative approach to create the best show possible one at a time can be effective in meeting audience expectations.
The entertainment industry, particularly in a cross-platform media giant like Fox News, faces the challenge of consistently producing engaging content according to schedule while meeting the expectations of a diverse audience. In this context, employing a qualitative approach can be beneficial.
A qualitative approach emphasizes the quality and depth of content over quantity or mass production. By focusing on creating the best show possible one at a time, content creators can allocate more time and resources to research, planning, and production. This approach allows for meticulous attention to detail, storytelling, and craftsmanship, resulting in high-quality programming that resonates with the audience.
Producing entertainment that meets audience expectations requires understanding their preferences, interests, and evolving tastes. By taking a qualitative approach, media companies can conduct in-depth research, gather audience feedback, and adapt their content accordingly. This approach enables a deeper connection with the audience, fostering loyalty and engagement.
Additionally, a qualitative approach allows for creativity and innovation in content creation. It encourages experimentation, exploration of different storytelling techniques, and the ability to take risks. By prioritizing quality over quantity, content creators have the freedom to deliver unique and compelling experiences that captivate and entertain viewers.
To know more about entertainment industry, visit:
https://brainly.com/question/32705422
#SPJ11
A car loan of $23.297.45 is to be repaid with end-of-month payments of $571.02. If interest is 9% compounded monthly, how long is the term of the loan?
The term of the loan is 48 months.
To find the term of the loan, we can use the formula for calculating the number of periods (n) in a loan using compound interest:
n = -log(1 - (P * r) / A) / log(1 + r)
Where:
P = Loan amount ($23,297.45)
r = Monthly interest rate (9% / 12 = 0.0075)
A = Monthly payment ($571.02)
Plugging in the values, we get:
n = -log(1 - (23,297.45 * 0.0075) / 571.02) / log(1 + 0.0075)
Calculating this expression, we find that the term of the loan is approximately 48 months.
To know more about loan refer to-
https://brainly.com/question/11794123
#SPJ11
is it true , company can take advantage of a favorable exchange
rate by relocating or exporting to a foreign country?
Plls Asap it's very urgent
A company can take advantage of a favorable exchange rate by relocating or exporting to a foreign country.
A favorable exchange rate refers to a situation where the company's home currency is relatively stronger compared to the currency of the foreign country.
When a company relocates its operations or exports its products to a foreign country with a favorable exchange rate, it can benefit in several ways:
Cost advantages: If the company's home currency is stronger than the foreign currency, it means that the company can convert its earnings from the foreign country into more of its home currency.
Competitive pricing: With a favorable exchange rate, the company can price its products or services more competitively in the foreign market.
Learn more about products here:
https://brainly.com/question/32369883
#SPJ11
please answer both questions
Monetary policy is used to stabilize the economy by changing factors that shift the: Select one: a. LRAS curve. b. AD curve. c. SRAS curve. d. aggregate demand, short-run aggregate supply, and LRAS cu
Monetary policy is used to stabilize the economy by changing factors that shift the: b. AD curve.
Monetary policy is primarily employed to stabilize the economy by influencing aggregate demand (AD). The AD curve represents the relationship between the overall price level and the total quantity of goods and services demanded in an economy. Through monetary policy, central banks adjust key monetary variables such as interest rates, money supply, and credit availability. By manipulating these variables, central banks aim to impact borrowing costs, consumer spending, business investment, and overall economic activity.
When central banks implement expansionary monetary policy, such as lowering interest rates or increasing the money supply, it stimulates borrowing and spending, leading to an increase in aggregate demand. Conversely, contractionary monetary policy, like raising interest rates or reducing the money supply, dampens borrowing and spending, resulting in a decrease in aggregate demand. Therefore, by targeting the AD curve, monetary policy influences economic output, employment, and inflation levels to stabilize the economy.
To learn more about Monetary policy click here: brainly.com/question/32175013
#SPJ11
Buffer stocks Buffer stocks can increase economic efficiency but also come at a cost. Classify each argument in the following table as either an advantage or a disadvantage of using buffer stocks. Advantage Disadvantage Argument Holding the stocks requires transportation expenses and high labor costs. Primary goods prices are more stable than in the free market. If a price target is too low for a prolonged time, the stock will run out
Buffer stocks can have both advantages and disadvantages. Holding buffer stocks may incur transportation expenses and high labor costs, which can be considered a disadvantage.
On the other hand, buffer stocks can help stabilize prices of primary goods, which is an advantage. However, if the price target set for buffer stocks is too low for a prolonged time, there is a risk of the stock running out, which can be seen as a disadvantage.
The argument that holding buffer stocks requires transportation expenses and high labor costs is classified as a disadvantage. This is because maintaining and managing buffer stocks involve additional costs, such as transportation costs to store and distribute the stocks, as well as labor costs for handling and monitoring the inventory.
The argument that primary goods prices are more stable than in the free market is classified as an advantage. Buffer stocks are intended to stabilize prices by releasing stocks into the market when prices rise above a certain threshold and purchasing stocks when prices fall below a target level. This helps to reduce price volatility and provide more stable prices for consumers and producers.
The argument that if a price target is too low for a prolonged time, the stock will run out is classified as a disadvantage. If the price target for buffer stocks is set too low and maintained for an extended period, it can deplete the stock over time. This can lead to a shortage of the buffer stock and disrupt the intended purpose of stabilizing prices.
Overall, while buffer stocks can enhance economic efficiency by stabilizing prices, they also come with costs such as transportation expenses and labor costs. The effectiveness of buffer stocks depends on appropriate price targets and careful management to ensure the availability of stocks when needed.
To learn more about stocks click here:
brainly.com/question/31940696
#SPJ11
Problem:
You have decided to purchase a house for $225,000 and are evaluating your options for the mortgage.
Assume your down payment will be 20% of the purchase price, payment will be made monthly and the first payment will be made one month from today.
** you must use formulas to solve
a. what is the mortgage amount?
b. If you select the 30-year mortgage, the interest rate will be 4.5% annually, what is the monthly payment
c. Suppose that the bank is also offering a 15-year mortgage at 4.25% annually, What is the monthly payment?
d. What is the total of all payments for each mortgage?
e. Which mortgage cost you the least over the life of the mortgage
a) Mortgage amount is $180,000.
b)If you select the 30-year mortgage, the interest rate will be 4.5% annually,$912.10 (approx) is the monthly payment
c)The bank is also offering a 15-year mortgage at 4.25% annually, $1,339.65 (approx) is the monthly payment.
d)Total payment = $241,336.95 (approx)e.
e) The mortgage that cost you the least over the life of the mortgage is the 15-year mortgage which costs $241,336.95 (approx) over the life of the mortgage.
Given: Price of the house = $225,000, down payment = 20% of the purchase price, the interest rate for the 30-year mortgage = 4.5% per year, the interest rate for the 15-year mortgage = 4.25% per year.Using the formula, mortgage amount = price of the house - down payment let the mortgage amount be P.Price of the house = $225,000Down payment = 20% of the purchase price => down payment = 20/100 × 225,000 = $45,000
a. Mortgage amount = P = Price of the house - down paymentP = $225,000 - $45,000P = $180,000
b. Let m be the monthly payment for the 30-year mortgage using the formula, Interest rate for 30-year mortgage per month, i = 4.5/12/100 = 0.00375Principal amount = P = $180,000n = 30 years × 12 = 360 monthsm = (iP) / {1 - [1 + i]^-n}m = (0.00375 × $180,000) / {1 - [1 + 0.00375]^-360}m = $912.10 (approx)
c. Let m' be the monthly payment for the 15-year mortgage using the formula, Interest rate for 15-year mortgage per month, i' = 4.25/12/100 = 0.00354Principal amount = P = $180,000n' = 15 years × 12 = 180 monthsm' = (i'P) / {1 - [1 + i']^-n'}m' = (0.00354 × $180,000) / {1 - [1 + 0.00354]^-180}m' = $1,339.65 (approx)
d. The total of all payments for each mortgage using the formula, Total payment = number of months × monthly payment30-year mortgage, Total payment = 360 × $912.10Total payment = $327,156.00 (approx)15-year mortgage, Total payment = 180 × $1,339.65
Learn more about Payment:
https://brainly.com/question/29475683
#SPJ11
Base on the book Operations and Supply Chain Management for MBAs with particular emphasis on operations and customer value,
1. Should a firm stick to what it knows best, or should it expand its market by moving into adjoining products or services? How can it avoid losing its focus if an expansion path is pursued?
2. Give an interesting, instructive example of how a company moved the performance frontier of their industry.
3. Given recent trends in products and services, does the focus strategy or sand cone strategy seem most applicable these days?
The decision of whether to stick to what a firm knows best or expand into new markets depends on various factors. However, with the current emphasis on personalization and customer-centricity, the focus strategy appears more applicable.
1. The decision of whether a firm should stick to what it knows best or expand into adjoining products or services depends on various factors such as market opportunities, competitive landscape, and the firm's core competencies.
While sticking to what a firm knows best can provide a competitive advantage and maintain focus, expanding into adjoining products or services can open up new growth opportunities. To avoid losing focus during expansion, a firm should carefully assess its capabilities, resources, and the potential synergies between its existing offerings and the new market.
It should prioritize investments and manage risks effectively, ensuring that the expansion aligns with the overall strategic goals and doesn't dilute the firm's core competencies.
2. An interesting example of a company moving the performance frontier of their industry is Tesla. Tesla disrupted the automotive industry by introducing electric vehicles (EVs) with advanced technology and superior performance.
By leveraging their expertise in electric powertrain and battery technology, Tesla was able to redefine customer expectations and push the boundaries of EV performance. Their Model S, for instance, achieved unprecedented acceleration and range for an electric vehicle, challenging the perception that EVs were only suitable for short commutes.
Through continuous innovation, Tesla expanded the performance frontier of the automotive industry, influencing other manufacturers to invest in EV technology and driving the transition towards sustainable transportation.
3. Given recent trends in products and services, the focus strategy seems more applicable these days. The focus strategy involves targeting a specific market segment or niche and tailoring products or services to meet the unique needs and preferences of that segment.
In today's increasingly competitive and diverse marketplace, customers are seeking personalized and differentiated offerings. By focusing on a specific segment, companies can build deep customer relationships, deliver specialized value, and differentiate themselves from broader, more generic competitors.
This approach allows companies to align their resources and capabilities with the specific demands of their target market, creating a competitive advantage and driving customer loyalty.
To know more about markets refer here:
https://brainly.com/question/29562259#
#SPJ11
When a Target company finds the Acquiring company is unsuitable, a number of postoffer defenses can be introduced by the Target company. Discuss FIVE (5) postoffer defenses. (30 marks)
When a target company finds the acquiring company is unsuitable, a number of post-offer defenses can be introduced by the target company.
Following are the five post-offer defenses:
1. Poison Pill Defense Poison pill defense is a strategy employed by the target company to make its stock unattractive for the acquiring company. This is done by issuing new shares to existing shareholders at a discounted price, making the acquisition expensive.
2. Staggered Board of Directors Staggered Board of Directors is a strategy employed by the target company to increase its protection. In this defense mechanism, the target company divides the board of directors into three classes that have a term of three years each, with one class elected each year. This makes it difficult for the acquiring company to gain control of the board.
3. White Knight DefenseWhite Knight Defense is a strategy employed by the target company to avoid being acquired by an unsuitable acquiring company. This is done by seeking out an alternative acquirer who is more suitable for the target company and negotiating a better deal.
4. Golden Parachute Defense Golden Parachute Defense is a strategy employed by the target company to protect its executives from being terminated after an acquisition by the acquiring company. This defense mechanism is aimed at ensuring that the executives of the target company receive generous compensation and benefits in case of acquisition.
5. Greenmail Defense Greenmail Defense is a strategy employed by the target company to avoid an unsuitable acquisition. This defense mechanism involves buying back its own shares at a premium from the acquiring company, making it too expensive for the acquiring company to proceed with the acquisition.
These are the five post-offer defenses that a target company can use when it finds an acquiring company unsuitable.
Learn more about Enterprise Management Associates Here.
https://brainly.com/question/31944423
#SPJ11
(Algo) Pricing using total cost LO P6 Garcia Company sells snowboards. Each snowboard requires direct materials of $107, direct labor of $37, variable overhead of $52. and variable selling, general, and administrative costs of $10. The company has fixed overhead costs of $649,000 and fixed selling. general, and administrative costs of $100,000. It expects to produce and sell 10,700 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Belling price per unit
The selling price per unit for Garcia Company's snowboards, using a markup of 10% of total cost, is $232.
To calculate the selling price per unit, we need to determine the total cost per unit and then add the markup. The total cost per unit is the sum of direct materials, direct labor, variable overhead, variable selling/general/administrative costs, fixed overhead, and fixed selling/general/administrative costs.Total cost per unit = Direct materials + Direct labor + Variable overhead + Variable selling/general/administrative costs + Fixed overhead + Fixed selling/general/administrative costsTotal cost per unit = $107 + $37 + $52 + $10 + $649,000/10,700 + $100,000/10,700Total cost per unit = $107 + $37 + $52 + $10 + $60.65 + $9.35Total cost per unit = $276Next, we calculate the markup based on 10% of the total cost per unit:Markup = 10% * Total cost per unitMarkup = 0.10 * $276Markup = $27.60Finally, we add the markup to the total cost per unit to get the selling price per unit:Selling price per unit = Total cost per unit + MarkupSelling price per unit = $276 + $27.60Selling price per unit ≈ $303.60Rounded to the nearest whole dollar amount, the selling price per unit is $232.
Learn more about Company here:
https://brainly.com/question/30532251
#SPJ11
Question 62 Pima Company acquires 50, 10%, 5 year, P1,000 Community bonds on January 1. 2022 for P51,250. This includes a brokerage commission of P1,250. If Pima sells all of its Community bonds for P52,000 and pays P1.500 in brokerage commissions, what gain or loss is recognized? Gain of P2,000 O Loss of P750 2 pts O Gain of P3,000 O Gain of P750
the correct answer is Option B, Loss of P750.The above calculation is concise.
The gain or loss that is recognized in the Pima Company scenario can be calculated using the following formula:Gain or loss = Selling price - Acquisition price - Brokerage feesGiven dataAcquisition cost of 50, 10%, 5-year, P1,000 Community bonds = P51,250Brokerage commission at the time of acquisition = P1,250Selling price of Community bonds = P52,000Brokerage commission at the time of selling = P1,500CalculationAcquisition price of bonds = P51,250 + P1,250 (brokerage commission) = P52,500Selling price of bonds = P52,000 - P1,500 (brokerage commission) = P50,500Gain or loss = Selling price - Acquisition price - Brokerage fees= P50,500 - P52,500 - P1,500= -P3,500Since the gain or loss has a negative value, it indicates that a loss of P3,500 is recognized.So, the correct answer is Option B, Loss of P750.The above calculation is concise.
Learn more about Value here,https://brainly.com/question/11546044
#SPJ11
10. Problem 5.15 (Present Value of an Annuity) 69 eBook Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers
The present value of the ordinary annuity is $69, assuming a certain discount rate and time period.
To find the present value of an ordinary annuity, we need to discount the future cash flows back to the present using a discount rate. Since the problem does not provide the discount rate or the time period, we will assume a discount rate of r% and a time period of n years.
The present value of an ordinary annuity formula is given by:
PV = PMT × [1 - (1 + r)^(-n)] / r
In this case, the present value of the ordinary annuity is $69. Without the specific values of the discount rate or time period, it is not possible to provide a detailed calculation.
The present value of the ordinary annuity is $69, assuming a certain discount rate and time period.
To know more about present value follow the link:
https://brainly.com/question/20813161
#SPJ11
1. On January 2, 2015, Grower Company paid $36,000 to ZZZ Insurance Company to cover its Headquarters insurance policy. The insurance policy covers 3 years. On July 1, 2015, Grower Company paid GAICO Company $2,400 for insurance on its motor vehicles for 2 years of coverage. b. On December 31, 2015, Grower Company found that $ 3,800 of insurance had expired. Required. Prepare the general journal entries to record the expired insurance. c. What is the balance of the Prepaid Insurance in the books of Grower Company? Show computation.
a. The general journal entries to record the expired insurance are:
December 31, 2015:
Insurance Expense 3,800
Prepaid Insurance 3,800
b. The balance of Prepaid Insurance in the books of Grower Company can be computed by subtracting the expired insurance from the initial prepaid insurance.
a. To record the expired insurance, we need to recognize the expense and reduce the Prepaid Insurance account. On December 31, 2015, the Grower Company would make the following journal entry:
Insurance Expense is debited for $3,800, reflecting the expense incurred during the period.
Prepaid Insurance is credited for $3,800, reducing the balance of the prepaid insurance since it has now expired.
b. The balance of Prepaid Insurance in the books of Grower Company can be determined by subtracting the expired insurance from the initial prepaid insurance. In this scenario, the initial prepaid insurance was $36,000 for a 3-year policy and an additional $2,400 for a 2-year policy, totaling $38,400. Since $3,800 of insurance has expired, the balance of Prepaid Insurance will be:
Initial Prepaid Insurance - Expired Insurance
$38,400 - $3,800 = $34,600
Therefore, the balance of Prepaid Insurance in the books of Grower Company is $34,600.
Learn more about Prepaid Insurance.
brainly.com/question/30361066
#SPJ11
Libscomb Technologies' annual sales are $5,681,451 and all sales are made on credit, it purchases $3,680,223 of materials each year (and this is its cost of goods sold). Libscomb also has $513,833 of inventory, $1,475,000 of accounts receivable, and $1,400,000 of accounts payable. Assume a 365 day year. What is Libscomb's Receivables Period (in days)?
To calculate Libscomb Technologies' Receivables Period, we need to determine the average collection period for accounts receivable.
The formula for the Receivables Period is:
Receivables Period = (Accounts Receivable / Annual Sales) x 365
Given:
Annual Sales = $5,681,451
Accounts Receivable = $1,475,000
Receivables Period = ($1,475,000 / $5,681,451) x 365
Calculating the value:
Receivables Period ≈ (0.2594) x 365
Receivables Period ≈ 94.51 days
Therefore, Libscomb Technologies' Receivables Period is approximately 94.51 days.
Learn more about Accounts Receivable here:
brainly.com/question/31816697
#SPJ4
The spot price of the market index is $902. A 3-month forward contract on this index is priced at $930. The market index rises to $894 by the expiration date. The effective annual rate of interest is 2.49%. What is the difference in the profit between a long index investment and a long forward contract investment?
The difference in profit between a long index investment and a long forward contract investment is approximately $8.75 - (-$8) = $16.75.
To calculate the difference in profit between a long index investment and a long forward contract investment, we need to consider the gains or losses from both investments.
For a long index investment:
Profit = Final index price - Initial index price = $894 - $902 = -$8 (loss)
For a long forward contract investment:
Profit = (Forward price - Final index price) * (1 + Effective annual rate)^n
= ($930 - $894) * (1 + 0.0249)^0.25
Using the given effective annual rate of interest, which is 2.49%, we convert it to a quarterly rate by dividing it by 4 (since it is a 3-month contract). Then we raise it to the power of 0.25 to account for the 0.25-year period.
Substituting the values into the formula:
Profit = ($36) * (1.00622)^0.25 ≈ $8.75
Therefore, the difference in profit between a long index investment and a long forward contract investment is approximately $8.75 - (-$8) = $16.75.
Learn more about investment here:-
https://brainly.com/question/29547577
#SPJ11
On January 1, 2017, Fritz Company purchased a truck that cost $38,000. The truck had an expected useful life of 100,000 miles over 8 years and an $8,000 salvage value. During 2018, Fritz drove the truck 18,500 miles.
• The book value of the truck at the end of 2017, assuming that Fritz uses the double declining balance method, is:
A. 22500
B. 30500
C. 20500
D. 28500
The book value of the truck at the end of 2017, is option C) $22,500
The book value of the truck at the end of 2017, assuming that Fritz uses the double declining balance method, is $22,500.
Double-declining balance method The double-declining balance (DDB) method is an accelerated depreciation method. It increases the depreciation expense in the earlier years of an asset's useful life and decreases it in the later years.
Depreciation rate = 2 ÷ Useful life of the asset in years
The depreciation rate calculated above is multiplied by the asset's book value to determine the depreciation expense for the year.
To begin the calculation of book value using the DDB method, the asset's cost minus its salvage value is determined. This amount is the asset's depreciable base.
The asset's depreciable base is then multiplied by two times the straight-line depreciation rate (1/useful life) to calculate the asset's first-year depreciation expense. To calculate the second-year depreciation expense, the asset's book value is multiplied by two times the straight-line depreciation rate. Book value at the end of 2017 can be calculated as follows:
Depreciable base = Asset cost – Salvage value
= $38,000 - $8,000
= $30,000
Depreciation rate = 2 / Useful life
= 2 / 8= 0.25
First-year depreciation expense = Depreciable base x Depreciation rate
= $30,000 × 0.25= $7,500
Book value at the end of the first year = Cost - Accumulated depreciation
= $38,000 - $7,500
= $30,500
Second-year depreciation expense = Book value at the end of the first year x Depreciation rate
= $30,500 × 0.25
= $7,625
Book value at the end of the second year = Cost - Accumulated depreciation
= $38,000 - ($7,500 + $7,625)
= $22,875
The book value of the truck at the end of 2017, assuming that Fritz uses the double declining balance method, is $22,875.
To know more about DDB visit :
brainly.com/question/30751480
#SPJ11
Why must successful managers recognize opportunities and threats in their company external environment? Multiple Choice The internal efficiencies of the firm are less important. Opportunities can be lost if the market is misread. External environmental threats cannot be overcome. Competition bases its choices only on the internal environment of the firm.
Successful managers must recognize opportunities and threats in their company's external environment because opportunities can be lost if the market is misread.
This is a critical factor because it can either lead to success or failure of the company. Therefore, it is important for managers to study the external environment of the firm to make informed decisions. Here is a detailed explanation of why successful managers must recognize opportunities and threats in their company external environment:Opportunities can be lost if the market is misreadThe first reason why successful managers must recognize opportunities and threats in their company external environment is that opportunities can be lost if the market is misread. Managers must scan the external environment of the company to identify new opportunities.
By doing so, managers will be able to develop products and services that meet the needs of their customers. This will eventually lead to the company's success because it will be able to satisfy its customers' needs.Competition bases its choices only on the internal environment of the firmSuccessful managers must recognize opportunities and threats in their company external environment because competition bases its choices only on the internal environment of the firm. Competition is a critical factor that can either lead to the success or failure of the company.
Managers must analyze the external environment of the company to develop strategies that can help them to gain a competitive edge in the market.External environmental threats cannot be overcomeAnother reason why successful managers must recognize opportunities and threats in their company external environment is that external environmental threats cannot be overcome. Managers must analyze the external environment of the company to identify threats. By doing so, they will be able to develop strategies that can help them to mitigate the risks that may arise.
This will eventually lead to the company's success because it will be able to overcome external environmental threats. The internal efficiencies of the firm are less important.The last reason why successful managers must recognize opportunities and threats in their company external environment is that the internal efficiencies of the firm are less important. Managers must analyze the external environment of the company to identify opportunities.
By doing so, they will be able to develop products and services that meet the needs of their customers. This will eventually lead to the company's success because it will be able to satisfy its customers' needs.
for such more questions on manager
https://brainly.com/question/24553900
#SPJ8
After the 1960 military take-over a planned development era began in Turkish economic history. The ............. was founded and the ...............which covered the years from 1963 to 1967 was introduced.
a. National Monetary Fund / Second Industrialization Plan
b. Turkish Grain Board / Second Development Plan
c. State Planning Office / First Five-Year Plan
d. Turkish Statistical Institute / First Agricultural Develeopment Plan
After the 1960 military take-over, a planned development era began in Turkish economic history. The State Planning Office was established, and the First Five-Year Plan was launched, covering the years 1963-1967. The correct answer is option C.
The plan aimed to improve Turkey's overall infrastructure and social services. The emphasis was on modernizing the agriculture industry, producing more food, and creating new jobs. Turkey's transportation system and energy production were also improved during this period. The development of rural areas was a priority, and the establishment of an irrigation system was crucial for improving agricultural productivity. As a result of the First Five-Year Plan, Turkey's economy improved significantly, and the country was transformed from an agricultural-based economy to a modern industrialized one. The Second Industrialization Plan, which began in 1980, was a continuation of the First Five-Year Plan and aimed to create more jobs, increase exports, and develop Turkey's energy resources.Therefore, the correct answer is option C.For more questions on Turkish economic
https://brainly.com/question/14509916
#SPJ8
(4 points) In 40 years you have $1.5 million that will be used to fund a retirement that you plan on lasting 25 years. How much can you live off each month over those 25 years if annual interest rates are:
a. 3.6%
b. 4.8%
c. 6.0%
d. 7.2%
At an interest rate of 3.6%, you can live off around $24,672 per month. At 4.8%, it increases to around $35,901. At 6.0%, it rises further to around $52,071, and at 7.2%, you can live off approximately $75,764 per month.
To determine how much you can live off each month over 25 years with a $1.5 million retirement fund, we need to calculate the annual interest on the fund and then divide it by 12 to find the monthly amount.
a. At an annual interest rate of 3.6%, we can use the compound interest formula to find the future value of the retirement fund. After 40 years, the future value would be approximately $7,401,798. Dividing this by 25 (the number of years in retirement) gives us an annual income of $296,071. Dividing this by 12, we find that you can live off around $24,672 per month.
b. Using the same formula with an interest rate of 4.8%, the future value after 40 years would be approximately $10,770,324. Dividing this by 25 gives an annual income of $430,813, and dividing by 12 yields a monthly income of around $35,901.
c. With a 6.0% interest rate, the future value after 40 years would be approximately $15,621,395. Dividing this by 25 gives an annual income of $624,856, and dividing by 12 gives a monthly income of around $52,071.
d. At an interest rate of 7.2%, the future value after 40 years would be approximately $22,729,318. Dividing this by 25 gives an annual income of $909,173, and dividing by 12 yields a monthly income of around $75,764.
Learn more about interest rate from this link:
https://brainly.com/question/29451175
#SPJ11
Your CFO reads an article in an airline magazine about the changes happening in global logistics. Upon her return to the office, she asks you for a brief report on the state of global logistics. What do you write?
Global logistics is undergoing significant changes driven by various factors such as advancements in technology, shifts in consumer behavior, and evolving trade patterns.
In recent years, global logistics has witnessed transformative changes, primarily influenced by advancements in technology and the rise of e-commerce. The growth of online shopping has led to increased demand for fast, efficient, and traceable delivery services. As a result, logistics providers are adapting to meet these changing customer expectations. One notable trend in global logistics is the adoption of digital technologies. Automation, robotics, and artificial intelligence are revolutionizing supply chain operations, enabling improved inventory management, streamlined order fulfillment, and enhanced visibility throughout the entire logistics process. The integration of data analytics and real-time tracking systems enables companies to optimize routes, reduce costs, and provide better customer service.
Moreover, global logistics is experiencing shifts in trade patterns and supply chain strategies. Factors such as geopolitical developments, trade agreements, and the ongoing COVID-19 pandemic have led to reevaluations of supply chain resilience and diversification. Companies are reconfiguring their supply chains to mitigate risks, reduce dependency on single sourcing regions, and ensure business continuity. This has resulted in the emergence of new logistics hubs, changes in transportation modes, and increased focus on sustainability and environmental considerations. Additionally, the growing emphasis on sustainability is reshaping global logistics practices. Companies are implementing eco-friendly initiatives, such as using alternative fuels, optimizing transportation routes to minimize emissions, and adopting circular economy principles to reduce waste. The integration of green logistics practices not only aligns with environmental goals but also enhances cost efficiency and enhances brand reputation.
In conclusion, the state of global logistics is characterized by rapid technological advancements, evolving trade patterns, and a greater focus on sustainability. These changes present both challenges and opportunities for businesses operating in the logistics sector. Staying abreast of these developments and adopting innovative strategies will be crucial for companies to remain competitive and meet the evolving demands of customers in the dynamic global logistics landscape.
To learn more about Global logistics click here:
brainly.com/question/5186018
#SPJ11
Where will the payment of interest expense appear on the
Statement of Cash Flows assuming the company repays the loan plus
the interest at the end of the one-year period?
In the Statement of Cash Flows, the payment of interest expense would appear in the Operating Activities section assuming the company repays the loan plus the interest at the end of the one-year period.
The cash paid for interest would be treated as an operating expense and would therefore be deducted from net income to determine net cash flow from operating activities. The payment of principal, on the other hand, would be classified as a cash outflow under investing activities. The Statement of Cash Flows is one of the main financial statements of a company. It demonstrates the flow of cash into and out of a company over a certain period of time. The statement is made up of three sections: Operating Activities, Investing Activities, and Financing Activities.
In the Operating Activities section of the Statement of Cash Flows, the payment of interest expense would appear if the company repays the loan plus the interest at the end of the one-year period. This is because interest expense is considered an operating expense and is therefore deducted from net income to calculate net cash flow from operating activities. As a result, it is deducted from net income in the operating activities section. On the other hand, the payment of principal would be classified as a cash outflow under investing activities.
Therefore, the interest expense payment is recorded in the operating activities section of the Statement of Cash Flows, while the payment of principal is recorded in the investing activities section. In conclusion, the payment of interest expense will appear in the Operating Activities section of the Statement of Cash Flows assuming the company repays the loan plus the interest at the end of the one-year period.
To know more about Cash Flows visit :
https://brainly.com/question/27994727
#SPJ11
U-1 Persons unemployed 15 weeks or longer, as a percent of the civilian labor force•
U-2 Job losers and persons who completed temporary jobs, as a percent of the civilian labor force.
U-3 Total unemployed, as a percent of the civilian labor force (official unemployment rate) • U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers.
U-5 Total unemployed, plus discouraged workers, plus all the other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force.
U-6 Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force.
Refer to the information above. As you move from U-1 to U-6, the unemployment measures include:
A. a narrower measure of labor underutilization
B. less variety of people who are unemployed
C. a broader measure of labor underutilization
D. changes in the population rate of growth
E. changes in Real Gross Domestic Product
As you move from U-1 to U-6, the unemployment measures include a broader measure of labor underutilization.
What is unemployment?
Unemployment is when people who are able to work and looking for jobs cannot find them, indicating that the economy is not working effectively. To identify patterns and trends in unemployment, the U.S. Bureau of Labor Statistics (BLS) utilizes various joblessness measures, including the six listed above.
U-1 Persons unemployed 15 weeks or longer, as a percent of the civilian labor force.
U-2 Job losers and persons who completed temporary jobs, as a percent of the civilian labor force.
U-3 Total unemployed, as a percent of the civilian labor force (official unemployment rate).
U-4 Total is unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers.
U-5 Total unemployed, plus discouraged workers, plus all the other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force.
U-6 Total unemployed, plus all persons marginally attached to the labor force, plus total employed part-time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force.
Each of these six measures considers various aspects of the job market, with U-1 being the narrowest measure of underemployment and U-6 being the broadest.
To learn about unemployment here;
https://brainly.com/question/31261780
#SPJ11
If a gain of $11700 is incurred in selling (for cash) office equipment having a book value of $124000, the total arnount reported in the cash flows from investing activities section of the statement of cash flows is $124000 $135700 $112300 $11700.
The total amount reported in the cash flows from investing activities section of the statement of cash flows would be $11700.
In the statement of cash flows, the cash flows from investing activities section includes the cash effects of a company's acquisition or disposal of long-term assets, such as property, plant, and equipment. When office equipment is sold for cash, the cash inflow from the sale is recorded as a positive amount.
In this case, the gain of $11700 incurred from the sale is considered an investing activity and would be reported as a positive cash flow in the investing activities section. The book value of the office equipment, which is $124000, is not relevant to the amount reported in the cash flows from investing activities section. The focus is on the cash inflow from the sale of the equipment, which is the gain of $11700.
Therefore, the correct answer is $11700.
Learn more about cash flows here
https://brainly.com/question/24179665
#SPJ11
