Answer:
a. CVP income statement for 2014 based on management’s estimates.
Sales $1,804,000
Less Variable Costs :
Selling expenses—variable $69,800
Direct materials $428,000
Direct labor $354,000
Administrative expenses—variable $64,920
Manufacturing overhead—variable $310,000 ($1,226,720)
Contribution $577,280
Less Fixed Costs
Selling expenses—fixed $65,800
Administrative expenses—fixed $64,900
Manufacturing overhead—fixed $288,000 ($418,700)
Net Income / (Loss) $158,580
b. $0.34
c. (1) 2,616,875 bottles and (2) $1,308,438
d. contribution margin ratio = 32 % and margin of safety ratio = 27 %
e. $2,061,100
Explanation:
Number of Units Sold = Total Revenue ÷ Selling Price per unit
= $1,804,000 ÷ $0.50
= 3,608,000 bottles
Variable Cost per bottle = Total Variable Costs ÷ Number of Units Sold
= $1,226,720 ÷ 3,608,000
= $0.34
Break-even point in (units) = Fixed Costs ÷ Contribution per unit
= $418,700 ÷ ($0.50 - $0.34)
= 2,616,875 bottles
Break-even point in (dollars) = Fixed Costs ÷ Contribution Margin Ratio
= $418,700 ÷ ($0.16 / $0.50)
= $1,308,438
Contribution Margin Ratio = Contribution / Sales × 100
= ($0.50 - $0.34) / $0.50 × 100
= 32 %
Margin of safety ratio = (Expected Sales - Break Even Sales) / Expected Sales × 100
= ($1,804,000 - $1,308,438) / $1,804,000 × 100
= 27.470 OR 27 %
Sales to Reach Target Profit = (Target Profit + Fixed Costs) ÷ Contribution Margin Ratio
= ($240,852 + $418,700) ÷ 0.32
= $2,061,100
For the year 2014, management estimates the following revenues and costs is :
A: Net Income / (Loss) $158,580
B:The variable cost per bottle is $0.34.
C:The break-even point in units is 2,616,875 bottles and dollars is $1,308,438.
D:The contribution margin ratio = 32 % and margin of safety ratio = 27 %
E:The sales dollars required to earn net income of $240,852 is $2,061,100.
"Revenues and Cost"
Part A:
CVP income statement for 2014 based on management’s estimates.
Sales $1,804,000
Less Variable Costs :
Selling expenses—variable $69,800
Direct materials $428,000
Direct labor $354,000
Administrative expenses—variable $64,920
Manufacturing overhead—variable $310,000 ($1,226,720)
Contribution $577,280
Less Fixed Costs
Selling expenses—fixed $65,800
Administrative expenses—fixed $64,900
Manufacturing overhead—fixed $288,000 ($418,700)
Net Income / (Loss) $158,580
Part B :
The variable cost per bottle is :
Number of Units Sold = Total Revenue ÷ Selling Price per unit
Number of Units Sold = $1,804,000 ÷ $0.50
Number of Units Sold = 3,608,000 bottles
Variable Cost per bottle = Total Variable Costs ÷ Number of Units Sold
Variable Cost per bottle = $1,226,720 ÷ 3,608,000
Variable Cost per bottle = $0.34
The variable cost per bottle is $0.34.
Part C:The break-even point in (1) units and (2) dollars is :
Break-even point in (units) = Fixed Costs ÷ Contribution per unit
Break-even point in (units) = $418,700 ÷ ($0.50 - $0.34)
Break-even point in (units) = 2,616,875 bottles
Break-even point in (dollars) = Fixed Costs ÷ Contribution Margin Ratio
Break-even point in (dollars) = $418,700 ÷ ($0.16 / $0.50)
Break-even point in (dollars) = $1,308,438
The break-even point in units is 2,616,875 bottles and dollars is $1,308,438.
Part D:The contribution margin ratio and the margin of safety ratio is :
Contribution Margin Ratio = Contribution / Sales × 100
Contribution Margin Ratio = ($0.50 - $0.34) / $0.50 × 100
Contribution Margin Ratio = 32 %
Margin of safety ratio = (Expected Sales - Break Even Sales) / Expected Sales × 100
Margin of safety ratio = ($1,804,000 - $1,308,438) / $1,804,000 × 100
Margin of safety ratio = 27.470 OR 27 %
The contribution margin ratio = 32 % and margin of safety ratio = 27 %
Part E:
The sales dollars required to earn net income of $240,852 is :
Sales to Reach Target Profit = (Target Profit + Fixed Costs) ÷ Contribution Margin Ratio
Sales to Reach Target Profit = ($240,852 + $418,700) ÷ 0.32
Sales to Reach Target Profit = $2,061,100
The sales dollars required to earn net income of $240,852 is $2,061,100.
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The following are all examples of abnormal items disclosed by the company, except: (4 points) A) Goodwill Impairment Charges B) Royalty Expense C) Intangible Asset Impairment Charges D) Restructuring Charges
Answer:
Correct Answer:
B) Royalty Expense
Explanation:
A royalty is a payment made by one party, franchisee to another that owns a particular asset, franchisor for the right to ongoing use of that asset. The expenses incurred in executing this payment is called royalty expenses.
Pepci co. is issuing a $1,000 par value bond that pays 7 percent annual coupon and mature in 15 years. Investors are expected to pay $925 for the bond. The company is in a 40 percent tax bracket. What will be the firm’s after tax cost of debt?
Answer:
1,678660
Explanation:
Rawls would agree with the idea that inequalities can be justified if they are based on home-country values. redistribute wealth and property benefit those in the highest position. are used to the advantage of everyone. benefit those in the worst position.
Answer:
benefit those in the worst position.
Explanation:
Rawls theory is based on the concept that no inequalities shall prevail in the country. Although some inequalities are unavoidable.
In those circumstances, when Rawls shall agree to such inequalities, and in-fact, further states that it shall benefit all the people. But for this he states that those in the worst position shall be benefited first and with maximum.
This shall create an equality as these people facing inequality will not be criticised further for any purpose, if they are paid off well in the first instance only.
The IRS: a. requires official tax forms be obtained at the local IRS office. b. provides information on how to choose a stock. c. has an app for mobile phones. d. links to the H
Answer:
c. has an app for mobile phones.
Explanation:
The IRS refers to the Internal Revenue service handled by the government agency based on the Unites States. It is responsible for the tax collection and the imposition of the taxation law.
To check the status of your tax the IRS allows the application in the mobile devices so that everyone could access it anywhere anytime.
Therefore the correct option is c.
Next to each item, indicate whether it would most likely be reported on the balance sheet (B), the income statement (1), or the statement of stockholders' equity (SE) Choose
a. Cash (year end balance)
b. Advertising expense
c. Common stock
d. Printing fees earned B, T
e. Dividends
f. Accounts payable
g. Inventory>
h. Equipment
Answer:
a. balance sheet (B)
b. income statement (1)
c. statement of stockholders' equity (SE)
d. income statement (1)
e. statement of stockholders' equity (SE)
f. balance sheet (B
g.balance sheet (B
h.balance sheet (B
Explanation:
The Balance Sheet consists of balances in the Asset , Liabilities and Equity Accounts and it uses the equation Assets = Equity + Liability.It shows the result as at the end of the Financial Period.
The Income statement comprises of Revenues or Incomes and Expenses. The profit or loss resulting from operation during the financial period is the the end goal of this financial statement.
The statement of stockholders' equity (SE) shows the interest of the owners of the company and any distributions out of profit that has been made to them during the year.
A company’s book value increases when a company retains its net income.
a) true
b) false
The answer to your question is true.
At Bargain Electronics, it costs $29 per unit ($15 variable and $14 fixed) to make an MP3 player at full capacity that normally sells for $40. A foreign wholesaler offers to buy 3,200 units at $28 each. Bargain Electronics will incur special shipping costs of $2 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Accept Net Income Order Order Increase (Decrease)Revenues $ $ $Costs-Manufacturing ShippingNet income $ $ $The special order should be rejected accepted.
Answer:
Bargain Electronics would realize Net Income of $35,200 by accepting the special order.
Decision : The special order should be accepted.
Explanation:
Analysis of net income effect of accepting the special order
Sales ( 3,200 units × $28) $89,600
Less Expenses :
Variable ( 3,200 units × $15) ($48,000)
Shipping Costs ($2 × 3,200 units ) ($6,400)
Incremental Income / (loss) $35,200
Note that, the fixed costs are irrelevant for this decision. This is because they will remain the same whether or not the special order is accepted.
"A customer makes an investment in a CMO. In a given year, she receives $24,000 of payments, of which $6,000 is principal and $18,000 is interest. Which statement is TRUE about the taxation of the payments received?"
Answer:
Only the interest amount received is taxable.
Explanation:
CMO refers to Collateralised Mortgage Operation in this whenever one receives a payment it is joint of some principal and remaining amount as an interest.
The principal received only decreases the debt, that is created in a CMO. Thus, is not to be considered as an income in any manner.
Interest received is a part of income as do not decrease the liability of debt, rather increases the revenue, and is therefore, taxable.
When screening employees for employment to guard sensitive assets,the screener should look for employment data from the following areas:________
a) Former employers
b) State and local police
c) Schools
d) Television producers
Answer:
When screening employees for employment to guard sensitive assets,the screener should look for employment data from the following areas:________
a) Former employers
Explanation:
Former employers remain the best source of employment data when screening employees for employment. It is believed that past performances always influence future performances. As a result, former employers of any worker should be in position to provide sensitive information about the new employee. However, there is the need to adhere to data privacy by ensuring that the employee consents to the enquiry into his or her past.
27. Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be
The question is incomplete. The complete question is,
Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be
Year Dividend
1 $1.20
2 1.44
3 1.73
4 2.07
After this initial period of super growth, the rate of increase in the dividend should decline to 8 percent. If you want to earn 12 percent on investments in common stock, what is the maximum you should pay for this stock?
Answer:
The maximum that should be paid for the stock today is $40.29
Explanation:
We will use the two stage dividend growth model of DDM to calculate the price of the stock today. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price under the two stage model is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+g2) / (r - g2)] / (1+r)^n
P0 = 1.2 / (1+0.12) + 1.44 / (1+0.12)^2 + 1.73 / (1+0.12)^3 + 2.07 * (1+0.12)^4 +
[2.07 * (1+0.08) / (0.12 - 0.08)] / (1+0.12)^4
P0 = $40.2853 rounded off to $40.29
You're prepared to make monthly payments of $390, beginning at the end of this month, into an account that pays 7 percent interest compounded monthly. How many payments will you have made when your account balance reaches $23,087?
Answer:
$ 11,111,000
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Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $297,000, total variable expenses were $222,750, and fixed expenses were $36,900.Required:
1. What is the companyâs contribution margin (CM) ratio?
2. Estimate the change in the companyâs net operating income if it were to increase its total sales by $1,800.
Answer:
Results are below.
Explanation:
Giving the following information:
Sales in units= 42,000
Total sales= $297,000
Total variable expenses= $222,750
Total fixed expenses= $36,900
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (sales - total variable cost) / sales
contribution margin ratio= (297,000 - 222,750) / 297,000
contribution margin ratio= 0.25
Now, the effect on the income of an increase in sales:
Effect on income= contribution margin ratio*increase in sales
Effect on income= 0.25*1,800
Effect on income= $450 increase
The top four most economically globalized countries according to KOF Swiss Economic Instituteâs 2007 rankings include:___________.
Answer:
The top four most economically globalized countries according to KOF Swiss Economic Instituteâs 2017 rankings include:___________.
Netherlands, Ireland, Belgium, and Austria.
Explanation:
The KOF Swiss Economic Institute's ranking of the most economically globalized countries is a ranking of the countries with businesses that have global influence and presence. The Institute which an index called the KOF Globalisation Index to measure the economic, social and political dimensions of globalisation and rank countries according to their performances.
The shareholders' equity of Green Corporation includes $332,000 of $1 par common stock and $520,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $62,000 in 2021 after paying $32,000 cash dividends in each of 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021
Answer:
$16,800
Explanation:
The computation of the amount of dividends common shareholders will receive in 2021 is shown below:-
Dividends per year for preferred stock = Par value × Cumulative preferred stock
= $520,000 × 7%
= $36,400
So, dividends in arrears for preferred stock for years is
For 2017 = Dividends per year for preferred stock - Cash dividend
= $36,400 - $32,000
= $4,400
For 2018 = For 2017 + (Dividends per year for preferred stock - Cash dividend)
= $4,400 + ($36,400 - $32,000)
= $8,800
Total dividends to be paid to preferred stockholders = For 2018 + Dividends per year for preferred stock
= $8,800 + $36,400
= $45,200
Finally
Dividends for common stockholders = Declared Cash Dividend - Total dividends to be paid to preferred stockholders
= $62,000 - $45,200
= $16,800
Holiday corp has two divisions quail and marlin. quail produces a widget that marlin could use in its production. quails variable cost are $4 per widget while the fulls cost is $7. widgets sell on the open market for $12 each.
A. if quail has excess capacity, what would be the cost savings for Holiday if the transfer was made and marlin currently is purchasing 100,000 units on the open market.
b. what would be the maximum transfer price?
c. if quail is operating at capacity, what would be the minimum transfer price?
Answer:
a. $800,000
b. $12
c. $12
Explanation:
Cost Savings :
Market Price ($12 × 100,000 units) $1,200,000
Less Minimum Transfer Price ( $4 × 100,000 units) ($400,000)
Savings $800,000
Maximum Transfer Price is $12
If quail is operating at capacity, units to meet internal demand would need to be recovered from the external market and that creates an opportunity cost :
Minimum transfer price = Variable Cost per unit - Internal Savings + Opportunity Cost per unit
= $4 + ($12 - $4)
= $4 + $8
= $12
The communication tools a company uses to pursue its advertising and marketing objectives is often referred to as the company’s ________.
Answer:
Promotional mix.
Explanation:
In a person's day to day involvement in business, their are key patterns and methods that are used as target strategies to promote his/her business, Therefore this mix model is explained as the collection of tools you use that explicitly in enhancing of business, products, or services. The keys that are used most times use are personal selling, direct marketing, and sales promotions, also personal approach and also advertising play vital roles too. This model design directly shows its target audience values, features of the products or services you offer. This helps differentiate you from your competition and drive sales.
Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock
Complete Question:
BenchMark, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock.
Answer:
BenchMark, Inc.
The current share price for the stock is:
$43.13
Explanation:
a) Data and Calculations:
Dividend per share = $3.45
Growth rate = 5%
Investors' required rate of return = 13%
Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)
= $3.45/(0.13 - 0.05)
= $43.13
b) We can calculate BenchMark's current share price, by dividing the dividend per share by the investors' required rate of return after subtracting the growth rate from the required rate of return.
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,980 hours and the total estimated manufacturing overhead was $540,708. At the end of the year, actual direct labor-hours for the year were 21,950 hours and the actual manufacturing overhead for the year was $540,708. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)
Answer:
$738 Under applied
Explanation:
Calculation for Overhead at the end of the year
First step is to calculate for the POR using this formula
POR=Total estimated manufacturing overhead/Estimated direct labor-hours
Let plug in the formula
POR=$540,708/21,980 hours
POR=$24.6/DLH
Second step is to Calculate for the applied Overhead using this formula
Applied overhead =Actual direct labor-hours ×POR
Let plug in the formula
Applied overhead =21,950 hours×$24.6/DLH
Applied overhead=$539,970
The last step is to for the Overhead at the end of the year
Using this formula
Ending Overhead =Actual manufacturing overhead -Applied overhead
Let plug in the formula
Ending overhead =$540,708-$539,970
Ending overhead=$738 Under applied
Therefore the Overhead at the end of the year will be $738 Under applied due to the debit balance.
Net income was $448600 in the current year and $365500 in the prior year. The year to year percentage change in net income is closest to:__________.
Answer:
The answer is 22.74 perfect
Explanation:
The percentage change is:
[Future value(Current year net income) / Present Value(Prior year net income)] - 1
($448,600/$365,500) - 1
1.2274- 1
0.2274
Expressed as a percentage
22.74 percent.
Alternatively:
(Future value - present value) / present value
($448,600 - $365,500) / $365,500
$83,100/$365,500
0.2274
Expressed as a percentage
= 22.74 percent.
Which of the following statements is true of radio-frequency identification (RFID) tags?
a. They can help identify genuine products from counterfeit knock-offs.
b. They are designed to learn more about customers' wants, needs, and behaviors.
c. They help firms gain competitive advantage by forecasting customer retention rates.
d. They help identify which customers should be the focus of targeted marketing initiatives.
Answer:
Correct Answer:
a. They can help identify genuine products from counterfeit knock-offs.
Explanation:
Radio-frequency identification (RFID) tags refers to a technology whereby digital data encoded in RFID tags are captured by a reader via radio waves. In general, RFID is similar to barcoding in that data from a tag or label are captured by a device that stores the data in a database.
Answer:
a. They can help identify genuine products from counterfeit knock-offs.
Explanation:
Radio-frequency identification: The term "radio-frequency identification" is also referred as RFID, and is described as a phenomenon that utilizes "electromagnetic fields" to track and identify different tags attached to various objects automatically. Therefore, a radio-frequency identification tag generally possesses a small "radio transponder" which is a radio transmitter and receiver. Lastly, when it is being triggered by any "electromagnetic interrogation pulse" from a closed RFID "reader device", then the tag tends to transmit some digital data i.e, inventory number to the reader.
If assets are $365,000 and equity is $120,000, then liabilities are: __________
a. $120,000
b. $245.000
c. $365,000
d. $485,000.
e. $610,000.
Answer:
b. $245.000
Explanation:
The computation of the liabilities is shown below:
As we know that
The accounting equation comprise of
total assets = total liabilities + total equity
where,
total assets = $365,000
Total equity = $120,000
So, the total liabilities is
= total assets - total equity
= $365,000 - $120,000
= $245,000
Hence, the total liabilities is b. $245.000
Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $58 and takes two machine hours to make and Fancy has a unit contribution margin of $57 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Bramble do?
Answer:
plain makes a profit of $10
Explanation:
The computation is shown below:
Particulars Plain fancy
Unit contribution margin $58 $57
Machine hours 2 3
Contribution margin
per machine hour $29 $19
($58 ÷ 2) ($57 ÷3)
As we can see that the plain makes a profit of $10 that comes from
= $29 - $19
= $10
Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level 80 guests Variable overhead costs: Supplies $ 144.00 Laundry 600.00 Fixed overhead costs: Utilities 444.00 Salaries and wages 5,120.00 Depreciation 2,900.00 Total overhead cost $ 9,208.00 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests
Answer: $9,115
Explanation:
Total budgeted overhead cost =Variable Costs + Overhead costs
The variable costs listed are for an activity level of 80 guests but 70 guests will be coming.
The variable costs will be;
Supplies
= (144 / 80) * 70
= $126
Laundry
= ( 600/80 ) * 70
= $525
The rest are fixed costs so will stay the same regardless of activity level.
Total budgeted overhead cost = 126 + 525 + 444 + 5,120 + 2,900
= $9,115
A company uses the FIFO method for inventory costing. During a period, a production department had 56,000 units in beginning goods in process inventory which were 32% complete; the department completed and transferred 167,000 units. At the end of the period, 14,000 units were in the ending goods in process inventory and are 67% complete.
Compute the number of equivalent units produced by the department.
a. 181,000
b. 158,460
c. 167,000
d. 176,380
e. 111,000
Answer:
158460 ( B )
Explanation:
Given data :
production department ; 56000 units
process inventory = 32% = 0.32
completed and transferred units = 167000
ending goods units = 14000, 67% complete = 0.67
attached below is the table representation of the solution
The number of equivalent units produced by the department
= ∑ all the variables listed on the table
= 38080 + 11100 + 9380 = 158460
You wish to retire after 20 years; at which time you want to have accumulated enough money to receive an annuity of $60,000 a year for 25 years of retirement. During the period before retirement you can earn 4 percent annually, while after retirement you can earn 3 percent on your money. What annual contribution to the retirement fund will allow you to receive the 60,000 annually?
Answer:
$35,085.63
Explanation:
we must first calculate the amount of money that you need to receive $60,000 in annual distributions during 25 years. We must use the present value of an annuity formula:
PV = annuity payment x annuity factor
annuity payment = $60,000
annuity factor (3%, 25 periods) = 17.413
PV = $60,000 x 17.413 = $1,044,780
this means that you will need to save $1,044,780 in the remaining 20 years. The annual contribution can be calculated using the future value of an annuity formula:
FV = annuity payment x annuity factor
Fv = $1,044,780
annuity factor (4%, 20 periods) = 29.778
annuity payment = FV / annuity factor = $1,044,780 / 29.778 = $35,085.63
List some forms of political risk other than a takeover of a subsidiary by the host government, and briefly elaborate on how each factor can affect the risk to the MNC.Identify common financial factors for an MNC to consider when assessing country risk. Briefly elaborate on how each factor can affect the risk to the MNC.
Answer with Explanation:
The political risk are the risk that the investors and corporation bears who are affected by the political decisions of government. The adverse impact of political decision making is reduction in earnings, abandoning of operations, government interventions, etc.
Here are some of the political risks that has adverse impact on the operations of Multinational Corporations:
Blocked funds will result in loosing potential investments in other countries due to shortage of fund created by the blockage in movement of funds from one country to other. This blockage is as a result of regulations passed to restrict the use of money generated in a country.Changing tax laws will result in the decrease in earnings for the shareholders and retained earnings for the corporationsPublic revolt against the firm which was to abandon the use of fair treatment like in the case of PIA-Pakistan International Airlines. The company is struggling to lower its losses by rewarding the right person and firing employees who are working as per set standards. The employees has revolted against the firm which has severe impact on the share value in the stock market. The revolt continued for the whole month.Changing Interest rates would result in increase in interest cost to MNC which is also because of government interventions.Attitude of the host government towards MNC is political risk if the host government is willing to tighten controls which includes environmental related regulations, worker's right act, etc. This would increase the cost to the multinational corporations.Corruption and rule of Law effect the most to the corporations because the fraudulent activities can not be stopped if there is no rule of law. It also depends on how long does a legal case takes to be resolved.The Financial factors includes inflation rate, Exchange rate, GDP growth rate, interest rates, electricity cost, corporation taxes, labor costs, industry specific policies, etc. These factors can result in acceptance or rejections of projects in the country because these are the main financial factors that has tendency to alter the decision of the investors and corporations.
Corporation Taxes and interest rates are discussed above.All the cost related items which includes electricity costs, inflation rates, labor costs, etc are very important element as they are almost more than 50% of total cost of the project. Hence these are the financial factors that has immense importance when assessing country risks and considering potential investment opportunities.Exchange rate are another important element that helps in assessing the country risk of the company. If the investment was profitable but the currency deflated against the MNC's home country then it was not a good decision. The exchange rate fluctuations will also be an important financial factor while making business decisions.GDP growth rate is also one of the significant factor to consider because significant investment value grows if the Gross Domestic Production is growing with great pace and vice versa.How should an organization design its structure and culture to obtain a core competence in manufacturing and in research and development? What is your reasoning?
Answer and Explanation:
core competency of an organization comprise it's multiple resource, capabilities and skills that gives it a competitive advantage in the market. It was originated in management theory by C. K. Prahalad and Gary Hamel.
For an organization to have core competencies in manufacturing and also research and development putting it's organizational structure and culture to use, it has to:
create a flexible and somewhat independent structure for it's research and development department such that innovation is easy. Control must be decentralized and the team must come first
For the manufacturing department, an organic and participative approach should be encouraged. This would allow inclusive management such that workers are included in decision making processes. Managers should also be given more independence while workers should increasingly be empowered
the organization should also take stringent measures in employing the right people for the research and development as well as the manufacturing department such that these individuals are qualified and possess the needed expertise for their areas. Staff should equally be empowered through constant education and new skill acquisitions and be allowed to impart this knowledge on other staff by encouraging transfers in global expansion.
Merlin Anson owns Unix Computers, a company with five employees. As a small business owner, he has several options for payroll processing. What factors should he consider when deciding on which payroll processing option is best for Unix Computers
Answer: amount of money he wants to spend on the payroll processing. Also, he has to consider the independent contractors
Explanation:
From the question, we are informed that Merlin Anson owns Unix Computers, a company with five employees and that as a small business owner, he has several options for payroll processing.
The factors that he should consider when deciding on which payroll processing option is best for Unix Computers are amount he wants to spend on the payroll processing. Also, he has to consider the independent contractors. These two are essential to know which option is good for the company.
Before deciding on a pricing strategy, Wallmart consults with a strategy team to understand what discounts the Doormart is offering. The model that BEST fits this industry is:
Answer:
oligopoly
Explanation:
The model that best fits this industry would be an oligopoly. This is a market or industry which is dominated by a small group of very large companies/sellers. In this model, the few companies involved are in direct competition with one another and focus solely on outpricing one another in order to gain a competitive edge. Which is what Wallmart is trying to accomplish by understanding the discounts being offered by Doormart.
Tacit collusion is more likely to be a concern with horizontal alliances. vertical alliances. international alliances of any kind compared with domestic alliances. U.S. alliances with companies in less- developed countries.
Answer:
horizontal alliances
Explanation:
A horizontal alliance is a term that describes a form of arrangements or partnership between businesses that conduct as competitors in the exact area.
In other words, competitors work in unison to enhance their strategy in the market.
On the other hand, Tacit Collusion occurs when firms avoid actions that are likely to require or demand a response from another firm often a competitor. For example, when a firm avoids the opportunity to price cut an opposition due to the fact that, the opposition may retaliate
Hence, Tacit collusion is more likely to be a concern with HORIZONTAL ALLIANCE