Answer:
Jimmy Choo
a. 4. None of the above
b. 3. 1,172
c. 4. None of the above
Explanation:
1) Data and Calculations:
Leather and metals: $25/pair
Shoe boxes: $1/pair
Shoemaker wages: $10/pair
Variable costs = $36/pair
Selling price to boutique: $100.00
Contribution = $64/pair
2) Fixed Costs and Profit:
Advertising & promotion: $200,000
Executive Salaries $300,000
Total fixed costs = $500,000
Net profit = $140,000
3) Per unit gross marketing contribution:
Marketing cost per unit = $2 ($200,000/100,000 units)
Gross marketing contribution = $64/$2 = 3200%
4) Increase fixed costs by $75,000 to $575,000
Sales unit to sell = Fixed costs + profit/contribution margin per unit
= $575,000 + 140,000 /$64
= 1,172
5) Change in sales:
Change = 1,172 - 1,000 = 172
Percentage change = 172/1,000 x 100 = 17.2%
Jimmy Choo is the most famous designer and famed for his handcrafted shoes.
Given data:
Leather and metals = $25/pairShoe-boxes = $1/pair Wage of shoemaker = $10/pairVariable pricing= $36/pairSelling price = $100.00Contribution = $64/paira. Option 4. None of the above
Per unit gross marketing contribution can be explained by:
Marketing cost per unit = [tex]\dfrac{\$200,000}{100,000 \text{units}} = \$ 2[/tex]Gross marketing contribution = [tex]\dfrac{\$64}{\$2} \times 100\% = 3200\%[/tex]b. Option 3. 1,172
Advertising & promotion: $200,000Executive Salaries = $300,000Total fixed costs = $500,000Net profit = $140,000Fixed cost increased by $75,000 to $575,000
[tex]\text{Sales unit to sell} & = \text{Fixed costs} +\dfrac{\text{profit}}{\text{contribution margin per unit}}[/tex]
[tex]\text{Sales unit to sell} & = \text{\$575,000} +\dfrac{\text{140,000}}{\text{\$ 64}}[/tex]
= 1,172 units
c. Option 4. None of the above
Change in sales can be estimated by:
Change = 1,172 - 1,000 = 172
[tex]\text{Percentage change} = \dfrac{172}{1,000 } \times 100 = 17.2 \; \%[/tex]
To learn more about gross marketing and sales estimation follow the link:
https://brainly.com/question/14477119
Juan Foods pays off a long-term debt in full. Which one of the following statements best describes the appropriate book-keeping for this transaction?
a. Debit cash; credit long-term debt
b. Debit long-term debt; credit owners' equity
c. Debit owners' equity; credit long-term debt
d. Debit long-term debt; credit cash
Answer:
Debit long-term debt; Credit cash.
Explanation:
The Journal Entry is shown below:-
Long term Dr, XXXXXXXX
To Cash
(being long term is recorded)
Long-term debt is a liability which usually has a credit balance. Therefore, until the long-term debt is entirely repaid, the long-term debt account has to be debited to pay it off entirely from the account books. In another hand, the cash account has to be paid, because there is a cash outflow.
discuss how Continuous Improvement is impacting healthcare, banking, retail and/or government (choose one area). Merger of Lean and Six Sigma are interesting topics you can explore here
Answer:
Explanation:
How Continuous Improvement is impacting Healthcare
1. There is now a greater availability of consultancy services
2. Community health awareness programs are instilling health consciousness and care in members of remote communities
3. The presence of NGOs (Non-governmental Organizations) and NPOs (Non-profit Organizations) is increasing the availability of free medicines, equipment and healthcare infrastructure in low-income countries or states
4. Technological revolution has affected the health sector as well. Medical services and interactions between patients and doctors, has gone digital. Software applications were doctors and patients can meet, are now in vogue. This has reduced the stress, costs and risks involved in migrating from one place to another to deliver or receive healthcare. It also helps proffer immediate (temporary or permanent) solutions to emergency cases.
5. Apart from making good use of technology and philanthropy, regular scientific research impacts healthcare positively; by serving better ways to treat certain ailments and searching out the cures to new ailments or pandemics.
___________________ occurs when meanings are misinterpreted due to intentional or unintentional problems during the sending or receiving of the message
Answer:
Message distortion.
Explanation:
This term is explained to be a change in signal or is said to occur when message sent by one communicator is misinterpreted by the said receiver. In some cases processes shows that in this study form, their functioning is affected by certain of variables ranging from the objects or events being perceived, the environment in which perception occurs, and the individual doing the perceiving.
In some cases, misinterpretation is seen to play roles that form distortion in messages; thereby hampering the communication process. Also some environmental factors posses constraints of lights, sounds, smell, objects, social, political, cultural, technological environments which govern the human behaviour and stimulate him into action affecting communication too.
Answer: Message Distortion
Explanation:
When a message is sent by one entity with a meaning in mind for it but that message is misinterpreted by the recipient who sees another meaning, message distortion has occurred.
This could have been caused by factors that were either intentional or unintentional during the sending or receiving of the message such as network problems causing messages to be jumbled up.
Message distortion effects can range from harmless to colossal such as a trader getting a distorted message asking them to make a trade that will result in massive losses and acting on it.
Ted and Lisa are selling their home and have signed a listing agreement. Client or customer? Steven visits Ted and Lisa's open house, and he is interested in purchasing their home. What happens next? Is Steven a client or customer?
Answer: D. . Ted and Lisa are clients, and Steven is a customer. The listing agent must disclose to Steven that he/she represents Ted and Lisa and explain customer relationships.
Explanation:
The options to the question are:
A. Ted and Lisa are customers, and Steven is a client. The listing agent must disclose to Steven that Ted and Lisa are customers.
B. Ted and Lisa are clients, as is Steven. The listing agent must disclose to Steven that Ted and Lisa are also clients.
C. Ted and Lisa are customers, and Steven is a client. The listing agent must disclose to Steven that he/she represents Ted and Lisa and explain customer relationships
D. Ted and Lisa are clients, and Steven is a customer. The listing agent must disclose to Steven that he/she represents Ted and Lisa and explain customer relationship
From the question, we are informed that Ted and Lisa are selling their home and have signed a listing agreement and that Steven visits Ted and Lisa's open house, and he is interested in purchasing their home.
The above scenario shows that Steven is a customer while Ted and Lisa are the clients. Steven is a customer as he is the one that wants to buy the house.
The listing agent must then disclose to Steven that he/she represents Ted and Lisa and explain customer relationships.
Angela deposited her money in a credit union bank. One day, she finds that the bank deposited her paycheck to the wrong account, causing the account to become overdrawn. Which legal responsibility has Angela’s bank failed to uphold?
A.
the responsibility to keep her money safe
B.
the responsibility to reach the correct account upon payment
C.
the responsibility to notify customers regarding the money deposited or withdrawn
D.
the responsibility to issue an account statement listing all transactions over the past year
E.
the responsibility to protect customers’ money
Answer:
The correct answer is the responsibility to notify the customers regarding the money deposited or withdrawn by which this could have been prevented if the bank were able to provide the details that the money she had deposited were safely placed on her account and not on someone else’s. So, the answer is c.
Answer:
It's C. the responsibility to notify customers regarding the money deposited or withdrawn
Explanation:
Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs?
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below:
LN JQ RQ
Selling price per unit $ 161.88 $ 350.41 $ 446.71
Variable cost per unit $ 116.12 $ 279.11 $ 338.71
Minutes on the constraint 2.60 4.60 7.50
Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places.)
Garrison 16e Rechecks 2017-09-13
A. LN, JQ, RQ
B. RQ, LN, JQ
C. RQ, JQ, LN
D. JQ, RQ, LN
Answer:A. LN, JQ, RQ
Explanation:
To know the current profitability, we need to determine the contribution margin unit by the minutes on the constraints .
a) For LN
Contribution by unit = Selling price per unit- Variable cost per unit
$ 161.88 -$116.12 = $45.76
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $45.76/ 2.60 = 17.60
B) For JQ
Contribution by unit = Selling price per unit- Variable cost per unit
$ 350.41 -$279.11 = $71.3
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $71.3/ 4.60 = 15.50
c) For RQ
Contribution by unit = Selling price per unit- Variable cost per unit
$ 446.71 -$338.71 = $108
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $108/ 7.50 = 14.40
In order of their current profitability from most profitable to least profitable, We have LN with 17.60, next JQ with 15.50 and the least RQ with 14.40
Which of the following statements are true for both gratuitous and testamentary transfers?
A) A unified credit of up to $1 million reduces the tax on any transfer?
B) An annual exclusion offsets any transfer up to $13,000.
C) An election can be made to spilt a transfer between spouses.
D) A charitable and marital deduction is allowed in computing the taxable transfers.
Answer: D. A charitable and marital deduction is allowed in computing the taxable transfers.
Explanation:
A gratuitous transfer is when a property is being given as a gift from a donor while testamentary transfer has to do with the transfer of a property to an individual based on the specification in a will.
The thing true to them is that a charitable and marital deduction is allowed in computing the taxable transfers.
Which of the following is considered a capital asset for federal income tax purpose?
a) Accounts receivable acquired in the course of your business
b) Land used in your business
c) Furniture and equipment used in your business
d) Stock in trade
e) Automobile held for personal use
Answer:
b) Land used in your business
Explanation:
For tax purposes the IRS classifies capital assets as those that have a productive life of more than one year and is not normally sold during the course of a business's operations.
Capital assets are a type of production cost, they are used in the production process to generate revenue.
They are expensed over the useful life of the asset in the form of depreciation.
Land is an example of capital assets for the purpose of federal income tax.
It provides the site of production and is not an item that is sold in the short run. Rather it is used over several years.
the difference between the actual quanity and the standard quanity, multiplied by the standard price is the
Answer: Direct materials quantity variance.
Explanation:
Direct Material quantity variance is the difference between the actual quantity of materials used in production and the standard quantity that was supposed to be used, multiplied by the standard price of the material.
It is a method that checks the company's efficiency is being able to use raw materials to produce goods. If the Actual quantity needed is greater than the Standard quantity, this will be considered an Unfavorable Variance and mean that the company was not efficient in using the materials.
Causes of this can be low quality of materials and inadequate employee training.
Harry needed some extra money. In charge of purchasing for his company he did the following acts:
A1. He made a deal with a supplier that the salesman would give Harry directly 10% for all the purchases Harry ordered from the salesman's company.
A2. He knew that his secretary was committing a fraud by over-stating her travel expenses that the company paid her back for so Harry told her to pay him $100 per month for him not to reveal what he knew.
A3 . Harry created fake company that he pretended sold product to the company and he made orders from this fake company which he then had his company pay. The money went to an account the Harry controlled.
For each number above,
Q1 -describe the names given to the crimes committed.
Q2 - Other than through whistleblowing, how might these frauds have been detected?
Q3 - Which frauds could have been prevented and for those describe what that would have been the method of prevention and for those that most likely could not have been prevented, why?
Answer:
Q1. A1) kickback. A2) employee theft and bribery crime. A3) white-collar crime.
Explanation:
Q2. This crime could have been detected by the individual he had dealings with the first time-the Salesman.
Q3. His dealings with his secretary was a crime that could have been prevented if she had refused to give in to demands. However, the kickback fraud most likely could not have been prevented as the organization has limited knowledge of the illegal deal.
jet costs and is expected to fly miles during its -year life. Residual value is expected to be zero because the plane was used when acquired. If the plane travels miles the first year, how much depreciation should record under the units-of-production method?
Answer: c. $3,960,000
Explanation:
Using the units-of-production method of depreciation, depreciation is done per unit used.
With a residual value of zero, the formula is;
= Cost x Millage used / Useful life mileage
= 55,000,000 x 36,000,000/500,000,000
= $3,960,000
You are managing a portfolio of $1 million. Your target duration is 10 years, and you can choose from two bonds: a zero-coupon bond with maturity five years, and a perpetuity, each currently yielding 5%. a. How much of (i) the zero-coupon bond and (ii) the perpetuity will you hold in your portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. How will these fractions change next year if target duration is now nine years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answer:
Ai.Zero coupon bonds = 68.75%
Aii. Perpetuity= 0.3125
Bi. Zero coupon bonds = 70.58%
Bii. Perpetuity= 0.2942
Explanation:
ai. Calculation for How much of the zero-coupon bond
Duration of Zero Coupon Bond = 5 years
Duration of Perpetuity = 1.05/0.05 = 21 years
Using this formula
Dp=W×D1 +(1-W)×D2
Let plug in the formula
10 = 5w + (1 - w)21
10 = 5w + 21 - 21w
21w-10w=21-5
11w=16
w=11/16
w = 0.6875*100
w=68.75%
Zero coupon bonds = 68.75%
Therefore How much of the zero-coupon bond
you hold in your portfolio will be 68.75%
aii. Calculation for the perpetuity you will hold in your portfolio
Perpetuity= 1 - 0.6875
Perpetuity= 0.3125
Therefore the perpetuity you will hold in your portfolio will be 0.3125
bi. Calculation for how will these fractions change next year if target duration is now nine years
Duration of Zero Coupon Bond = (5 -1) =4years
Duration of Perpetuity = 1.05/0.05 = 21 years
Using this formula
Dp=W×D1 +(1-W)×D2
Let plug in the formula
9 = 4w + (1 - w)21
9 = 4w + 21 - 21w
21w-9w=21-4
12w=17
w=12/17
w = 0.7058×100
w=70.58%
Zero coupon bonds = 70.58%
Therefore How much of the zero-coupon bond
you hold in your portfolio will be 70.58%
bii. Calculation for the perpetuity you will hold in your portfolio
Perpetuity= 1 - 0.7058
Perpetuity= 0.2942
Therefore the perpetuity you will hold in your portfolio will be 0.2942
CAPM says that portfolio returns are best explained by: Group of answer choices Systematic risk Specific risk Economic factors Diversification
Answer:
Systematic risk
Explanation:
According to CAPM,
the expected return = risk free rate + ( beta x market premium)
Beta measures systemic risk
Systemic risk is risk inherent in a market and cannot be eliminated by diversifying portfolio. It is also known as market risk.
Dominic and Morgan are partners. Dominic has a capital balance of $360,000 and Morgan has a capital balance of $265,000. Morgan sells $125,000 of his ownership to Lance. Which of the following is true of the items in the balance sheet?
A. Assets will decrease by $125,000.
B. Assets will increase by $125,000.
C. The total equity decreases by $125,000.
D. The total equity remains unchanged.
Answer:
D. The total equity remains unchanged
Explanation:
Two partners are Dominic and Morgan. Their capital are $360,000 and $265,000. Total is $625,000. Now Morgan has decided to sell $125,000 of his ownership to Lance. So Lance will pay this money To Morgan. After admission capital of Morgan will be reduced to $140,000 and new partner Lance's capital is $125,000. Thus there will be no change in asset or total equity. However it has been assumed that new partner will not bring any goodwill.
During inflationary periods, assets such as TIPS, gold, and real estate are used as _____________ hedges. Money demand will decrease when interest rates, payment technology, inflation risk, and the liquidity of other assets ___________.
Answer:
Inflation; decrease.
Explanation:
An inflation can be defined as the sustained or persistent rise in the prices of goods and services at a specific period of time. Also, an inflation hedge refers to the investment that are used to protect the eroding purchasing power of a currency (money) as a result of a persistent increase in price level due to inflation.
During inflationary periods, assets such as TIPS, gold, and real estate are used as inflation hedges.
Additionally, money demand will decrease when interest rates, payment technology, inflation risk, and the liquidity of other assets decrease. This simply means that, the desired holding of financial assets in the form of money (monetary value) is dependent on factors such as interest rates, inflation risk, payment technology etc.
During inflationary periods, assets such as TIPS, gold, and real estate are used as inflation hedges.
Money demand will decrease when interest rates, payment technology, inflation risk, and the liquidity of other assets increases.
Inflation is when there is a general rise in the value of money. When there is an inflation, more money would be needed to buy goods and services. As a result, the value of currency would decrease.
On the other hand, the value of commodity money increases. As a result, people would prefer to hold commodities during an inflationary period because their value is preserved. These makes commodities good inflation hedges.
When interest rate increases, there would be a decrease in the demand for money. Individuals would prefer to save their money as the interest earned on deposits would be higher.
To learn more, please check: https://brainly.com/question/2569122
If the FOMC directs the Federal Reserve trading desk to loosen credit, which of the following will happen?
А) The trading desk will engage in repurchase agreements with banks and cash reserves will be injected into the banking system
B) The trading desk will engage in reverse repurchase agreements with banks and cash reserves will be injected into the banking system
C) The trading desk will engage in repurchase agreements with banks and cash reserves will be drained from the banking system
D) The trading desk will engage in reverse repurchase agreements with banks and cash reserves will be drained from the banking system
Answer: If the FOMC directs the Federal Reserve trading desk to loosen credit, the trading desk will engage in repo's with banks, injecting reserves into the banking system. This should lower the Fed Funds Rate between banks since there are more reserves available.
Explanation: During prolonged periods of economic recession, interest rates can be expected to. Decrease.
Consider the following work breakdown structure:What is the probability that this project will be completed within 210 days AND after 195 days? Time Estimates (days) Activity Precedes Optimistic Most Likely Pessimistic Start A,B,C - - - A D 38 50 62 B E 90 99 108 C E 70 80 90 D E,F 19 25 31 E End 91 100 115 F End 62 65 68
a) 0.815.
b) 0.8413.
c) 0.95.
d) 0.9772.
Answer: 0.8186
Explanation:
Given that;
activity To Tm Tp Te (V)^0.5 v
A 38 50 62 50 4 16
B 90 99 108 99 3 9
C 70 80 90 80 3.333333 11.11111
D 19 25 31 25 2 4
E 91 100 115 101 4 16
F 62 65 68 65 1 1
Expected duration Te = (4 × Tm + To + Tp ) / 6
Variance = ( Tp-To/6]²
variance of the critical path = 9+16 =25
SD of the critical path = ( var)^0.5 = 5
probability that the project will be completed within 210 days is given by
z = (210-200) / 5 = 2
which gives probability of 0.97725
Probability that the project will be completed within 195 days
z = (195-200) / 5 = -1
which corresponds to probability of 0.1586
Now required probability that project completes within 210 but before 195 days is given by
0.97725 - 0.1586 = 0.8186
The organizational environment is a set of forces and conditions that operate within an organization's boundaries. true false
Answer:
False.
Explanation:
The organizational environment is a set of forces and conditions that operate outside an organization's boundaries and has the potential or capability of affecting its operations, resources and performance, either fully or in parts.
Some examples of an organizational environment are competitors or rivals, government policies, regulatory agencies, suppliers, customers etc.
All of the following statements regarding long-term liabilities are true except?
A. Liabilities not expected to be paid within the longer of one year or the company's operating cycle are reported as long-term liabilities.
B. Long-term liabilities include long-term notes payable, warranty liabilities, lease liabilities, and bonds payable.
C. Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities.
D. Long-term liabilities can be reported on the balance sheet in a single total or in multiple categories.
Answer:
C. Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities.
Explanation:
The liabilities are the responsibility with regard to the amount that is borrowed by someone from any other person or financial institution. It is a responsibility of a person to return the borrowed amount within the prescribed time along with the interest. Its time period is more than one year
Based on the given options, the option A, B and D are correct but option D is not correct as they have the specified date
Hence, the option C is correct
Which describes a type of tax that funds city programs?
Answer:
local income tax
Explanation:
Suppose nominal GDP was $360 billion in 1990 and $450 billion in 2000. The appropriate price index (1985 = 100) was 120 in 1990 and 125 in 2000. Between 1990 and 2000, real GDP:____________
Answer:
Real GDP increased by 20% between 1990 and 2000
Explanation:
Real GDP (RGDP) = (Nominal GDP (NGDP) / Price level) x 100
RGDP, 1990 ($ Billion) = (360 / 120) x 100 = 300
RGDP, 2000 ($ Billion) = (450 / 125) x 100 = 360
Therefore, between 1990 and 2000, Real GDP
= (360 / 300) - 1
= 1.2 - 1
= 0.2
= 20%
Thus, the Real GDP increased by 20% between 1990 and 2000
You sell a stock for $50.00 that was held for 10 years. You earned a return of 8%. What was the original cost of the stock?
Answer:
Original cost of the stock = $23.16
Explanation:
Original cost of the stock = Selling price of stock / ( 1 + r )^n
Original cost of the stock = $50 / (1+8%)^10
Original cost of the stock = $50 / (1.08)^10
Original cost of the stock = $23.16
What is the usual rationale for governments to issue monopoly-promoting licenses to firms providing services such as trash collection
Answer: Economies of scale
Explanation:
Economies of scale are the cost advantages i.e the reduction in cost which a company benefits when there is efficiency in production. This is possible when there is a rise in production.
Therefore, the rationale for governments to issue monopoly-promoting licenses to firms providing services such as trash collection is due to economies of scale as this will help in reducing the cost and also allow one main company to do it more efficiently and effectively.
You have deposited $16,167 in a special account that has a guaranteed rate of return. If you withdraw $3,000 at the end of each year for 7 years, you will completely exhaust the balance in the account. The guaranteed rate of return is closest to: (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.
Answer:
7%
Explanation:
in order to solve this we can use the present value of an annuity formula:
present value of an annuity = annuity payment x annuity factor
present value of an annuity = $16,167annuity payment = $3,000annuity factor = ? all we know is that it lasts 7 periodsannuity factor = $16,167 / $3,000 = 5.389
using a present value of an annuity table, we can look for the annuity factor that corresponds to 7 periods and is equal to 5.389. In this case, the interest rate is 7% (annuity factor, 7%, 7 periods = 5.389)
On May 10, Whispering Winds Corp. issues 2,450 shares of $15 par value common stock for cash at $18 per share. Journalize the issuance of the stock.
Answer: Please find answers in the explanation column
Explanation:
Date Account Debit Credit
May 10 cash $44,100
Common stock $36, 750
paid in capital in excess of
------par value common stock $7,350
Calculation
Cash = shares issued x cash per share = 2,450 x 18 =$44,100
Common stock= shares issued x par value common stock = 2,450 x $15=$36, 750
paid in capital in excess of -par value common stock= 2450 x (18-15 = 2450 x $3)= 7,350
Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,000 Tri-Robos is as follows. Cost Direct materials ($48 per robot) $912,000 Direct labor ($38 per robot) 722,000 Variable overhead ($5 per robot) 95,000 Allocated fixed overhead ($32 per robot) 608,000 Total $2,337,000 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $111 per unit or $2,109,000. Following are independent assumptions. 1) Assume that $405,000 of the fixed overhead cost can be avoided. Using incremental analysis, determine whether Jobs should accept this offer 2) Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Jobs can use the released productive resources to generate additional income of $375,000. 3) Based on the above assumptions, indicate whether the offer should be accepted or rejected?
Answer:
1) the offer should be accepted because its results in a financial advantage of $25,000
2) the offer should not be accepted because its results in a financial disadvantage of $5,000
3) depending on whether 1) or 2) is true, the offer should be accepted or rejected. If 1) applies, then the offer should be accepted. If 2) applies, then the offer should be rejected.
Explanation:
19,000 robots produced:
Cost Direct materials ($48 per robot) $912,000 Direct labor ($38 per robot) $722,000 Variable overhead ($5 per robot) $95,000 Allocated fixed overhead ($32 per robot) $608,000 ($405,000 are avoidable)Total $2,337,000average total production cost per unit = $123
avoidable costs per unit = $112.3158
total avoidable costs if units are purchased from outside vendor = $2,134,000
total purchase costs from outside vendor = $2,109,000
financial advantage of purchasing robots = $25,000
if no allocated fixed costs are avoidable, but the facilities can generate $375,000 in additional income:
total avoidable production costs + additional income = $2,104,000
total purchase costs from outside vendor = $2,109,000
financial disadvantage of purchasing robots = $5,000
If nothing is stated to the contrary in terms of an auction, an auction is presumed to be ________.
Answer: with reserve
Explanation: If nothing is stated to the contrary in terms of an auction,an auction is presumed to be ________.
A)non-binding
B)a quasi-contract
C)without reserve
D)with reserve
E)an implied-in-law contract
An auction is presumed to be with reserve if nothing is stated to the contrary (in terms of an auction). What this means is that the seller is merely expressing or showing his intent to receive offers. In contrast, however, if an auction is without reserve, the lowest bid must be accepted by the auctioneer but if it is with reserve, the auctioneer may refuse to sell the item if he is not satisfied with the size of the highest bid.
The HBR case you purchased is priced with one price for students (the lowest price), one price for professors, and one price for the general public. What is this an example of?
Answer:
Price discrimination
Explanation:
Price discrimination is defined as the situation where a supplier sells identical or similar products to different markets at different prices.
This strategy is successful because different target customers are willing to pay different prices for the same product.
In the given example the HBR is priced differently for students (the lowest price), professors, and for the general public.
These different target markets pay different notices for the same product
Each vase requires one pound of clay in its manufacture. Victoria Corporation has a policy that the inventory of clay at the end of each month needs to be equal to % of the production needs for the following month. At the beginning of January, pounds of clay were in inventory. How many pounds of clay would Victoria Corporation need to purchase in February (Month 2)?
Answer:
2,840 pounds
Explanation:
The question is incomplete:
Victoria Corporation manufactures quality vases. Budgeted sales and production data for the vases are as follows:
Month 1 budgeted unit sales 2,000
Month 2 budgeted unit sales 2,500
Month 3 budgeted unit sales 3,200
Month 1 budgeted unit production 2,400
Month 2 budgeted unit production 2,700
Month 3 budgeted unit production 3,400
Raw material required for each finished unit (in pounds) 1
The ending inventory for each month should be equal to 20% of the next month's production needs. Each vase requires one pound of clay in its manufacture. Victoria Corporation has a policy that the inventory of clay at the end of each month needs to be equal to 20% of the production needs for the following month. At the beginning of January, 480 pounds of clay were in inventory. How many pounds of clay would Victoria Corporation need to purchase in February (Month 2)?
Materials budget
January February
Units to be produced 2,400 2,700
Clay per unit 1 1
Total clay needed for px 2,400 2,700
+ desired ending inv. 540 680
Total materials required 2,940 3,380
- beginning inventory -480 -540
Purchase requirements 2,460 2,840
Answer:
The answer is oviously 2840 pounds