Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $300,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 200,000 Less operating expenses: Commissions to amusement houses $ 100,000 Insurance 7,000 Depreciation 35,000 Maintenance 18,000 160,000 Net operating income $ 40,000 Garrison 16e Rechecks 2017-05-22 Exercise 12-8 Part 2 2a. Compute the simple rate of return promised by the games. 2b. If the company requires a simple rate of return of at least 12%, will the games be purchased?
Answers
Answer:
13.33%
Yes , the recent games should be purchased.
Explanation:
Relevant data provided to figure out the simply rate of return is here below:-
Net income = $40,000
Initial investment = $300,000
As per the given question the solution of simple rate of return is provided below:-
Simple rate of return = Net income ÷ Initial investment × 100
= $40,000 ÷ $300,000 × 100
= 0.13333 × 100
= 13.33%
The recent games should be purchased for the reason that simple rate of return exceed least rate of return = Simple rate of return - Least simple rate of return
= 13.33% - 12%
= 1.33%
Related Questions
In which scenario is an individual's behavior least likely to change?
a. The city of Saskatoon chooses to give its residents a penny for each soda can they recycle in an effort to promote environmental awareness.
b. In an effort to make people eat healthier, the city of Bakersville tells its residents to eat wheat bread instead of white bread.
c. A basketball team manages to sign a trio of famous basketball stars who then clamor for other players to come join their team to win a guaranteed championship.
d. The country of Ravamolk enacts a policy to fine companies 20% of their earnings if the safety standards in their factories do not reach acceptable work conditions.
Answers
In the other options, there are actual incentives/consequences for the thing they are trying to change. Without those, it’s more of a suggestion, and people are less likely to change without those incentives/consequences because it doesn’t directly affect them.
It’s like your mom saying “You should really do your homework.” versus “If you don’t do your homework, I’ll take your phone.” or “If you do your homework, you can have ice cream after dinner.” In this scenario, you are more likely to change with the incentives/consequences because it directly affects you.
An individual's behavior is least likely to change when merely informed of a healthier option, like in Scenario B, as there is no incentive or consequential action attached.
Explanation:In the given scenarios, an individual's behavior is least likely to change in Scenario B where the city of Bakersville tells its residents to eat wheat bread instead of white bread. This scenario only involves information provision with no rewarding or punitive actions attached to induce behavior change, as compared to the rest of the scenarios. Behavioral change usually occurs when there are incentives or penalties associated with the action. For instance, in Scenarios A & D, Saskatoon and Ravamolk are using a reward technique and penalties respectively, as a trigger for behavioral change. Scenario C is using the appeal of fame and success to encourage change. But talking about bread choice without any consequential actions does not guarantee a behavior change.
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People in societies where uncertainty avoidance is high want
Answers
Answer:
I don't see any options.
______is a diversion tactic to avoid responsibilities.
a. Type A
b. Workaholism
c. Time juggler
d. Procrastinator
Answers
A procrastinator is an individual who employs diversion tactic to avoid reponsibilities rather than facing the activities needed to accomplish the responsibilities.
Who is a procrastinator?A procrastinator is a nonchalant individual that shows an unwillingness to do the needful and the rightful assignment or task at a required time. They do procrastinate by extending the time at which they are to perform a required task that needed to be done presently.
Procrastination is not ideal is a young adult because it makes you not take charge of your daily activities. Procrastination is an undisciplined traits that makes you not be goal oriented and all your day drive itself. It is important not to procrastinate and take charge of your activities.
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In addition to the general directions outlined in the syllabus, I would like for you to consider your ethical stance regarding the Ford Pinto case in terms of at least one of the ethical theories we have considered so far. Which one describes your stance as closely as possible? Why? Also, does this stance resonate with the readings on corporate and social responsibility? How? Again, the link to this is posted above. Remember to briefly explain how the theory you have chosen works. For example, if you choose Kant, explain the categorical imperative or if you choose utilitarianism, then explain the principle of utility.
Answers
Answer:
Explanation:
One ethical theory that can be applied to the Ford Pinto case is utilitarianism, which is the idea that an action is morally right if it maximizes overall happiness or pleasure and minimizes overall pain or suffering. In this case, the utilitarian approach would suggest that the decision to release the Pinto despite knowing its faulty gas tank design was unethical because it resulted in unnecessary harm and death to its consumers. The company put profits above the safety of its consumers, which ultimately did not maximize overall happiness or pleasure.
This stance on utilitarianism does resonate with readings on corporate and social responsibility. The company had a responsibility to prioritize the safety of its consumers over profits, which was a clear failure of corporate social responsibility. By applying utilitarianism, it becomes clear that the company did not act in a way that maximized overall happiness or minimized overall pain.
It is important to note that there are other ethical theories that can be applied to the Ford Pinto case, such as deontology (which focuses on duty and moral obligation) or virtue ethics (which focuses on character and moral virtues). Each theory provides a different perspective on the ethical issues presented in the case.
What can you add in the Performance centre?
A. Banking alerts
B. New customer names
C. Additional charts
D. Amortization schedules
Answers
Answer:
The answer is A. Banking Alerts.
Explanation:
It helps people stay on top of things.
Banking alerts can you add in the Performance center. Thus option (A) is correct.
What is the performance?
A play, concert, or another type of entertainment is staged or presented as a performance. It can also be described as the process or action of doing or completing a deed, task, or function. A qualitative methodology known as "performance research" uses
You can add KPIs to your dashboard that are important to you as well as additional reports and measures of your data against previous periods or the same period last year.
Another exclusive feature of QBO Advanced is the performance center and configurable graphing. Your financial data can be shown in chart form, which makes it easier to grasp than just numbers alone. You are able to design a chart that shows up to 10 groupings of values on a single line.
Therefore, You can add banking notifications in the Performance center. As a result, choice (A) is right.
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Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 790 $ 4,740
October 4 Sale 4
October 10 Purchase 5 800 4,000
October 13 Sale 3
October 20 Purchase 4 810 3,240
October 28 Sale 7
October 30 Purchase 8 820 6,560
$ 18,540
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31
Answers
The cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.
The LIFO method (last-in, first-out) of inventory valuation requires that the most recent purchases of inventory be used first in the cost of products sold and ending inventory calculations. The ending inventory and cost of products sold at the end of October will be calculated using the LIFO method, based on the data given in the table.Based on the data given, the total units sold is 14, and the total units purchased is 17. Here's how to calculate the ending inventory and cost of products sold using the LIFO method:Step 1: The last purchase of 8 units at a cost of $820 each on October 30 is deducted from the inventory count, leaving 9 units.Step 2: The previous purchase of 4 units at a cost of $810 each on October 20 is deducted from the inventory count, leaving 5 units.Step 3: The next purchase of 5 units at a cost of $800 each on October 10 is deducted from the inventory count, leaving 0 units.Step 4: Based on the LIFO method, the cost of the ending inventory is the sum of the cost of the oldest units remaining in stock, which is 4 units at a cost of $790 each on October 1, totaling $3,160.Step 5: Based on the LIFO method, the cost of goods sold (COGS) is calculated by adding the total cost of units sold, which is 14 units at a cost of $820 each on October 30, 4 units at a cost of $810 each on October 20, and 5 units at a cost of $800 each on October 10, totaling $17,260.Therefore, the cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.For more questions on cost of goods sold (COGS)
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hola ¡antes estaba como ruedanatalia222 nose que paso se me borro la cuenta los puntos los corazon los seguidores las CORONAS ¡¡¡:( estoy muy triste :( :(
Answers
Answer:
borro la cuenta los puntos los corazon
Explanation:
One reason why firms might want to pursue a strategic alliance strategy is to exploit
economies of scale. Exploiting economies of scale should reduce firm’s costs. Does this
mean that a firm pursuing an alliance strategy to exploit economies of scale is actually
pursuing a cost leadership strategy? Why or why not? Support your answer
Answers
So, a strategic alliance may benefit the combined group in two ways: one, it will enable them to target larger clients without facing significant rivalry
Economies of scale, which are commonly assessed by the quantity of product provided per unit of time, seem to be the cost savings that businesses gain as a result of the significant scale of the economy.
In order to lower manufacturing costs, economies of scale is the method of producing any good at a very high volume. Strategic alliances allow two businesses to more effectively merge their operations.
It will enable them to lower costs through economies of scale. Additional benefits of economies of scale include lower prices for goods or cost focus in the marketplace.
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The two steps to implementing a marketing concept are to ______.
-determine the customers needs and design an advertisement
-identify the target market and create a marketing mix
-develop a new product and plan the budget
-assemble a marketing team and plan a sales promotion
Answers
The two steps to implementing a marketing concept are to identify the target market and create a marketing mix. Thus the correct answer is B.
What is marketing?Marketing refers to a technique that consists of selling and promoting of products to increase the sells and maximize profit. This marketing can be done as advertising which helps in creating awareness among customers.
The marketing concept is a tactic that businesses use to meet client wants, boost sales, maximize profits, and outperform rival businesses.This plays important role in attracting customers.
The marketing concept can only be implemented after identify the target market on which the products is focused and then create a market mix based on the evaluation.
Therefore, option B is appropriate.
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please can someone help me solve this question?
Answers
The activity that Sampson's company most likely excels at is B. Doing things within the company that have been developed through shared values and beliefs.
Why it is important to develop a culture of ethics ?Employees and stakeholders' moral judgment is influenced by a company's culture. Every employee is encouraged to speak and act honestly and ethically by organizations that seek to build a strong ethical culture. Strongly moral businesses draw clients to their goods and services.
Customers are content and confident in their interactions with an honest business. Additionally, ethical businesses keep the majority of their staff members over the long term, which lowers the costs associated with turnover. When they invest in businesses that uphold high ethical standards, investors can rest easy knowing that their money is secure. Good morals prevent takeovers and maintain high share prices.
Companies should therefore endeavor to develop a culture of ethics and one way to do this it to do things in the company that come from a continuous system of shared values and beliefs in the company and its ethical goals.
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One way to adda table to a presentation is to
A. click on Clip Art under the Insert tab.
B. click on WordArt under the Insert tab.
C. right-click on an existing page with content and choose Add Table.
D. add a new slide and left-click on the Table symhgl in an empty area.
Answers
One way to adda table to a presentation is to click on WordArt under the Insert tab. (b)
Click Table under the Insert tab. Pick one of the following options from the Insert Table menu: Click to enter your table after dragging the pointer over the grid to the desired number of columns and rows. Enter a value in the Number of columns and Number of rows boxes after clicking Insert Table WordArt.
You can also display information in PowerPoint using tables. The cells in a table are arranged in a grid with rows and columns. Tables can be used for a variety of activities, including the presentation of text and numerical data. You can even customize tables to fit your presentation.
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briefly explain how the decision support system resolved the problems experienced by the railways
Answers
The decision support system improved the efficiency of the railroads, paying special attention to the punctuality and speed of transportation on both passenger and commercial routes. The Indian Railways encounter a number of difficulties, including the failure to ensure train punctuality.
Ticketless transit by passengers, damage to or theft of railroad property, and others. The railways suffer a considerable loss in income as a result. By December 2023, 100% electrification of the broad gauge is the goal. In 2020–21, the speed of freight trains doubled to 46 kmph from 23 kmph in previous years. In January 2019, all unmanned level crossings on the broad gauge were removed.
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Which of the following is a consumer right per the consumer bill of rights?
1. Right to know
2. Right to return
3. Right to profit
4. Right to sanity
Answers
Answer:
1. Right to know.
Explanation:
The Consumer Bill of Rights refers to certain rights that are given to customers in a business transaction. These set of rights are given to customers or consumers and are made so that consumers will have equal rights to be protected against any unfair or false claims.
Among the given set of rights, the right to know is a consumer right according to the bill of rights. This right is one of the four sets of original rights as set in the consumer bill of rights. The other three are the right to safety, to be heard, and to choose.
Thus, the correct answer is option 1.
Why does supply decrease when the price
of resources increases?
Answers
Answer:
see below
Explanation:
Resources are the ( inputs) materials used in the production of goods meant for sale. The cost of inputs has a direct impact on the price of the finished goods(output). An increase in the cost of inputs increases the cost of production. An increase in production cost increases without a corresponding rise in the selling price means that the profits margin per unit will decline.
Suppliers are motivated to sell or deliver more quantities in the market by profit prospects. An increase in the costs of inputs decreases profit margins. Reduced profits margin result in suppliers supplying reduced quantities in the markets.
The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 10 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $13,000 per year. The machine is expected to have a three-year useful life with a zero salvage value.
Use Present Value Appendix PV of $1, to determine the maximum amount of cash the dean should be willing to pay for a copy machine.
Note: Round your intermediate calculations and final answer to 2 decimal places.
Use Present Value Appendix PVA of $1, to determine the maximum amount of cash the dean should be willing to pay for a copy machine.
Answers
The dean should be willing to pay up to $32,324.40 for the copy machine, given the expected incremental cash inflows and the three-year useful life of the machine.
To determine the maximum amount of cash the dean should be willing to pay for a copy machine, we need to calculate the present value of the incremental cash inflows.
Using the Present Value of $1 table with a 10% discount rate, we can find the present value factor for a three-year period: 0.751.
Therefore, the present value of the incremental cash inflows is:
$13,000 x 0.751 = $9,763
This means that the maximum amount of cash the dean should be willing to pay for the copy machine is $9,763.
To calculate the present value of an annuity of $1, we can use the Present Value of an Annuity of $1 table. In this case, we need to use the same 10% discount rate and a three-year period.
The present value factor for an annuity of $1 for three years at 10% is 2.4868.
So, the maximum amount of cash the dean should be willing to pay for the copy machine, taking into account the incremental cash inflows over the three-year useful life of the machine, is
$13,000 x 2.4868 = $32,324.40
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Suppose you have the opportunity to invest in a project that provides you with $4,000 every year forever. If you require an 8% return on investments with similar risk, what is the most you would be willing to pay for this project?
Answers
To determine the maximum amount you would be willing to pay for the project, we can use the concept of the present value of perpetuity. The present value is the current worth of future cash flows discounted at a specified rate of return. In this case, the perpetuity provides a constant cash flow of $4,000 every year indefinitely.
The formula for the present value of perpetuity is:
Present Value = Cash Flow / Discount Rate
Given that the cash flow is $4,000 and the required return or discount rate is 8% (0.08 as a decimal), we can calculate the present value as follows:
Present Value = $4,000 / 0.08 = $50,000
Therefore, the most you would be willing to pay for this project is $50,000. This amount ensures that the annual cash flow of $4,000 is equivalent to an 8% return on your investment, considering the risk and time value of money.
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. Write short note on any three (3) of the following a. Programme decision b. Non-Programme decision c. Decision matrix
Answers
Programme decision: A program decision is a decision that affects or is affected by a program, and may be a decision to implement, modify, or terminate a program.
Non-programme decision: A non-program decision is a decision that is not related to a program, and may include decisions related to policies, procedures, operations, staffing, and resources.
Decision matrix: A decision matrix is a tool that is used to evaluate and prioritize options based on a set of criteria.
Programme decision: A program decision is a decision that affects or is affected by a program, and may be a decision to implement, modify, or terminate a program. These decisions are often made at the strategic level, and have a significant impact on the organization's mission, goals, and objectives. Non-programme decision: A non-program decision is a decision that is not related to a program, and may include decisions related to policies, procedures, operations, staffing, and resources. These decisions are often made at the operational level, and have a direct impact on the day-to-day operations of the organization. Decision matrix: A decision matrix is a tool that is used to evaluate and prioritize options based on a set of criteria. The matrix provides a visual representation of the decision-making process, and can be used to compare options based on their relative strengths and weaknesses. The decision matrix can be used to facilitate group decision-making, and can help to ensure that decisions are based on objective criteria rather than personal biases or preferences.For more such questions on terminate
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Apply the principals you learned about the 5 Cs to this situation. How did this improve McDonald's business. Is there a way for you to apply this in your own business or job?
Click on the link below:
McDonald's Gets It Right Links to an external site.
Main, K.(n.d.) A customer found a short note with their McDonald's delivery. It's a master class in marketing: The simple thing the fast-food giant got right that most get wrong. INC,
Answers
The 5 Cs in the business stand for Customers, Company, Collaborators, Competitors, and Context. The application of the 5 Cs is to offer a structure that can be employed to analyze the primary factors that impact an organization. In the context of McDonald's, the principles of the 5 Cs were applied to improve their business.
The first C is Customers: McDonald's gave the customers a reason to come back for more. McDonald's was the first restaurant to use the drive-thru service to save time, and this served to boost the company's revenues. The use of the drive-thru service provided consumers with a means to avoid queues and access fast food quicker, hence serving to attract more clients.
McDonald's also made efforts to enhance their services and provide healthier food options, which kept clients coming back for more
The second C is Company: McDonald's optimized its resources to boost the company's operations. The firm started using an IT system to manage its services, which provided an excellent platform to access information from different locations. This aided the company in implementing a consistent pricing strategy throughout all its branches and helped streamline its supply chain management processes.
Third C is Collaborators: McDonald's partnered with different organizations to enhance the quality of their products. McDonald's partnered with different firms such as Coca-Cola to supply the beverage products, which saved on cost and provided consumers with high-quality drinks.
The company also started partnering with different charitable organizations to engage in Corporate Social Responsibility (CSR) activities, which created a positive impact on society and helped promote the company's brand image.
Fourth C is Competitors: McDonald's conducted a competitive analysis to understand their market position. The company identified different competitors in the fast-food industry and came up with strategies to keep up with the competition.
For instance, McDonald's focused on enhancing their products and services, which kept clients coming back for more and also increased the company's revenues. Fifth C is Context: McDonald's also took into account the broader context in which the company operated.
The company considered the different laws and regulations that affected the fast-food industry and took steps to comply with them. The firm also took into account environmental factors such as climate change and came up with strategies to minimize its carbon footprint.
In conclusion, the application of the 5 Cs principles helped McDonald's improve its business by enhancing customer satisfaction, optimizing its resources, partnering with different firms, conducting a competitive analysis, and considering the broader context in which it operates.
This can be applied to other businesses or jobs to enhance their operations by considering the primary factors that impact their organization.
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Brainstorm the ways in which GARP can impact on the management and success of a sports organisation by explaining it first and then identifying the roles and functions which it should play within the sports organisation
Answers
Answer:
GARP, which stands for Governance, Accountability, Risk Management, and Performance, encompasses key principles and practices that can greatly impact the management and success of a sports organization. Here are the ways in which GARP can influence and the roles and functions it should play within a sports organization:
1. Governance:
- GARP emphasizes the importance of having effective governance structures and processes in place within the sports organization.
- It involves establishing clear lines of authority, decision-making frameworks, and transparent communication channels.
- GARP ensures that the organization has a well-defined governance structure, including a board of directors or management committee responsible for setting strategic direction, overseeing operations, and ensuring compliance with regulations.
- The role of GARP in governance is to provide guidance on ethical conduct, promote transparency, and ensure accountability at all levels of the organization.
2. Accountability:
- GARP emphasizes the need for accountability within a sports organization, holding individuals and teams responsible for their actions and decisions.
- It involves implementing systems and processes to track performance, measure results, and report on progress.
- GARP ensures that the organization sets clear goals and objectives, establishes key performance indicators (KPIs), and holds individuals accountable for achieving them.
- The role of GARP in accountability is to provide frameworks for performance measurement, establish reporting mechanisms, and foster a culture of responsibility and ownership within the organization.
3. Risk Management:
- GARP highlights the importance of identifying and managing risks that can impact the sports organization's operations, reputation, and financial stability.
- It involves assessing potential risks, developing mitigation strategies, and implementing controls to minimize the likelihood and impact of adverse events.
- GARP ensures that the organization has a robust risk management framework in place, including policies, procedures, and monitoring mechanisms.
- The role of GARP in risk management is to provide guidance on risk identification, analysis, and mitigation, as well as ensuring compliance with legal and regulatory requirements.
4. Performance:
- GARP emphasizes the need for measuring and improving performance within a sports organization to achieve strategic objectives.
- It involves setting performance targets, regularly evaluating progress, and implementing strategies to enhance performance.
- GARP ensures that the organization establishes performance metrics aligned with its mission and strategic goals.
- The role of GARP in performance management is to provide frameworks for performance evaluation, facilitate continuous improvement, and align individual and team efforts with organizational objectives.
Overall, GARP plays a crucial role in shaping the management and success of a sports organization by establishing effective governance structures, promoting accountability, managing risks, and driving performance. It provides guidance and frameworks to ensure that the organization operates ethically, transparently, and efficiently, ultimately contributing to its long-term sustainability and achievements.
For each of the following pairs of goods, which good would you expect to have more elastic demand and explain clearly why? (8 marks)
a. Coca-Cola or water
b. Required textbooks or fiction novels
c. Ice-cream or chocolate ice-cream’
d. Train ride during the next 6 months or train rides during the next 5 years
Answers
Answer:
A. Coca- cola would have a more elastic demand due to the fact that water is an essential commodity and an individual have to consume water no matter what the price of it is.
B. Fictional novels are luxury goods and their demand could be avoided by someone as compared to the textbooks in case of any deficiency of money. Thus, novels would have more elastic demand.
C. The elasticity of ice cream would be more elastic as if a costumer is willing to eat chocolate flavor he or she would not bother about slight changes in price.
D. Elasticity for five years would be high as the consumer will have more options during such time period.
What is the total risk for Raytheon ($RTX) for 2022?
Hint: total risk is the d standard deviation based on daily returns
Answers
Checks for financial health score 4/6. With a debt-to-equity ratio of 46.2% and total shareholder equity of $74.4 billion, Raytheon Technologies has $34.4 billion in total debt. Its overall assets are $161.6 billion, and its total liabilities are $87.3 billion. Total risk is the sum of systematic and unsystematic risks. Systematic risk, which is the investment portfolio risk not reliant on individual investments, is attributed to general market variables.
The total risk that an organization faces can alter depending on a number of variables, including market conditions, financial performance, competition, governmental changes, and geopolitical factors. Additional variables that can be used to assess total risk include volatility, debt-to-equity ratios, credit scores, and market capitalization.
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Assume you work for a company as an accountant and you have been asked to calculate the depreciation expense for each year of a new machine that your company purchased on April 1, 2021, at a cost of $ 350,000. You have estimated that the machine will have a salvage value of $15,000. The machine is expected to be used for 27,800 working hours during its 5-year life.
a) Prepare the depreciation schedule for each year of the useful life under
straight line method.
b) Compute the depreciation expense for 2021, 2022 and 2023 under units-of activity method, assuming machine usage was 2700 hours in 2021 and 3500 hours and 2200 hours in 2022 and 2023 respectively.
Answers
Answer:
a) Depreciation Schedule under Straight-Line Method:
Date Cost Depreciation Accumulated Net Book Value
Expense Depreciation
April 1, 2021 $350,000 $50,250 $50,250 $299,750
2022 350,000 67,000 117,250 232,750
2023 350,000 67,000 184,250 165,750
2024 350,000 67,000 251,250 98,750
2025 350,000 67,000 318,250 31,750
b) Depreciation expense under the units-of-activity method:
2021 2,700 * $12.05 = $32,535
2022 3,500 * $12.05 = $42,175
2023 2,200 * $12.05 = $26,510
Explanation:
a) Data and Calculations:
Cost of equipment on April 1, 2021 = $350,000
Estimated salvage value = $15,000
Depreciable amount = $335,000
Estimated useful life = 5 years
Annual Depreciation:
Straight-line method = $67,000 ($335,000/5)
Expected machine usage hours = 27,800
Depreciation rate under the unit-of-activity method = $335,000/27,800
= $12.05
Triple-F Health Club (Family, Fitness, and Fun) is a not-for-profit family-oriented health club. The club's board of directors is developing plans to acquire more equipment and to expand club facilities. The board plans to purchase about $25,000 of new equipment each year and wants to establish a fund to purchase the adjoining property in four or five years. The adjoining property has a market value of about $300,000.
The club manager, Jane Crowe, is concerned that the board has unrealistic goals in light of the club's recent financial performance. She has sought the help of a club member with an accounting background to assist her in preparing a report to the board supporting her concerns.
Jane would like you to prepare a cash budget for 2024 for the Triple-H Health Club and explain any operating problems that this budget discloses for the Triple-H Health Club. Is Jane Crowe's concern that the board's goals are unrealistic justified?
Answers
The Triple-H Health Club may face operational issues in 2024, based on the cash budget. There is a $5,000 cash shortfall as a result of the anticipated cash outflows exceeding the anticipated cash inflows.
What is Cash Outflow?Any cash payments or expenditures made by a person or organization, such as purchasing inventory, paying salaries, or purchasing equipment, are referred to as cash outflow.
To prepare a cash budget for 2024, we need to estimate the club's cash inflows and outflows for that year. Here is a potential cash budget for Triple-H Health Club for 2024:
Cash Inflows:
Membership fees: $200,000
Donations: $20,000
Total Cash Inflows: $220,000
Cash Outflows:
Equipment purchases: $25,000
Rent: $60,000
Salaries and wages: $100,000
Utilities: $12,000
Insurance: $10,000
Maintenance and repairs: $8,000
Total Cash Outflows: $215,000
Net Cash Inflows: $5,000
This cash budget indicates that the club is expecting a net cash inflow of $5,000 in 2024, which is a positive sign. However, the budget also shows that the club has relatively high fixed costs in the form of rent, salaries, and wages, which could pose challenges if the club's revenue falls short of expectations.
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Problem 20-39 (Algo) CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays, CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem: Price of copper $ 0.84 per pound up to 2,999 pounds 0.83 per pound for orders between 3,000 and 5,999 pounds 0.81 per pound for orders 6,000 pounds or greater 47,000 pounds per year 30 percent per unit per year of the price of the copper $ 30 Annual demand Holding cost Ordering cost Which quantity should be ordered? Quantity pounds
Answers
The optimal order quantity of CUI is 3,345.21 pounds, and the total cost to meet the annual demand at the lowest cost is $1,410,832.95.
The economic order quantity (EOQ) formula may be used to find the order quantity that will satisfy the yearly demand at the cheapest price. It goes like this: EOQ = √((2 × Annual demand × Ordering cost) ÷ Holding cost)
When the annual demand is 47,000 pounds, the ordering cost is $30, and the holding cost is 30% of the copper price per unit each year
At each price break, we may use the following ranges to get the copper price:
as much as 2,999 pounds: 0.84 cents per pound
3,001 to 5,999 pounds 0.83 cents per pound
more than 6,000 pounds: At $0.81 per pound
By using the EOQ formula to get the total cost for each price break, we can determine the ideal order quantity. The best amount to order is the one that has the lowest overall cost.
EOQ = √((2 × 47,000 × 30) ÷ (0.3 × 0.84))
∴ EOQ = 3,345.21 pounds
We will utilize the pricing of $0.83 per pound because the ideal order amount is between 3,000 and 5,999 pounds. As a result, the final price for the ideal order quantity is:
Total cost = (Annual demand × Ordering cost) + (Holding cost × EOQ × Price of copper)
Total cost = (47,000 × 30) + (0.3 × 3,345.21 × 0.83)
Total cost = $1,410,000 + $832.95
∴, Total cost = $1,410,832.95
∴ , The ideal order size is 3,345.21 pounds, and it would cost $1,410,832.95 to fulfill the annual demand at this size.
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Allison lives in the United States and has just retired. It is the end of October 2018. She has long had dreams of cruising the fjords on the west coast of Norway, visiting Buckingham Palace in the United Kingdom, seeing the cherry blossoms in Japan, and going to the top of the Eiffel Tower in France. She last considered all four options on New Year's Day 2008. She would like to select her trip based on which country´s currency has subsequently weakened the most against the U.S. dollar. Where should she go on vacation?
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Answer:
In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What does this event reflect about the nature of GDP?
Click card to see definition
If the measurement of economic activity evolves, GDP can change.
Explanation:
Based on the weakened conditions of a currency exchange against the U.S. Dollar between 2008 and 2018, it would be advisable for Allison to go on a vacation for visiting Buckingham Palace in the United Kingdom.
What is the significance of currency exchange?A currency exchange can be referred to or considered as the rate at which the currency of one country compares with the currency of any other country. U.S. Dollar is currently the strongest currency in the world.
When a comparison between the currencies like the American Dollar and Euros is done, it is found that there is a degrowth in the value of Euros against the dollars, and thus, vacation in such country will be cheaper for Allison to visit to.
Therefore, the significance regarding currency exchange has been aforementioned.
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value consists of a product's: a. performance characteristics and attributes for which customers consider paying. b. proprietary characteristics and attributes for which customers are willing to pay. c. performance characteristics and attributes for which customers are willing to pay. d. proprietary characteristics and attributes for which customers consider paying.
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The value consists of a product's Option A. performance characteristics and attributes for which customers consider paying.
Value proposition is a statement that outlines the benefits of a service or product offered to the target market by a company. The aim of the value proposition is to influence the market into buying what the company is offering. It can be classified into two types: the economic value proposition and the customer value proposition. Economic value proposition, This is focused on the monetary value proposition for the market.
The strategy here is to target customers based on their ability to pay. It is a great strategy if you have a product that is of high value to the customer, which they are willing to pay for. However, it is not useful in all scenarios. For instance, if a company tries to market an essential product, such as food or water, based on this strategy, it is unlikely to be successful. This is the product's performance characteristics and attributes for which customers are willing to pay. It's an attempt to connect with the customer's needs and wants in a way that's meaningful to them.
A customer value proposition is aimed at creating a meaningful relationship between the customer and the product. To achieve this, the company must focus on the product's performance characteristics and attributes that customers value. It is also important to consider the specific needs and wants of the target market when creating the customer value proposition. Therefore, the correct option is A.
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Chester has negotiated a new labor contract for the next round that will affect the cost for their product Camp. Labor costs will go from $3.79 to $4.39 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Camp would need to be sold next round to break even on the product?
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Complete Question:
Chester has been selling widgets for $10, total variable costs are $4.40 and fixed costs are $100,000.
Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cid. Labor costs will go from $2.79 to $3.39 per unit. Assume all period and other variable costs remain the same.
If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Cid would need to be sold next round to break even on the product?
Answer:
Chester
Break-even point = Fixed costs/Contribution margin per unit
= $100,000 / $5
= 20,000 units
Explanation:
a) Data and Calculations:
Selling price = $10
Old variable cost = $4.40
Additional variable cost = $0.60
New variable costs = $5 ($4.40 + $0.60)
Contribution per unit = Selling price minus variable cost per unit
= $5 ($10 - $5)
Fixed costs = $100,000
b) Chester's Break-even point (in units) is the number of units of a product Camp that Chester requires to sell in order to recover her fixed costs. The information provided by break-even analysis guides Chester in making decisions for the production of Camps and its marketing. Without identifying the units of Camp to be produced and sold in order to remain in business, all things being equal, Chester might short-produce or short-sell Camps and run the business unprofitably.
Ashley wants to increase the profits of her e-business. She recognizes that most online searchers click on links on the first search page, so she optimizes her website structure so that it ranks higher on a search. What strategy does this illustrate
Answers
Answer:
The strategy is Search Engine Optimization (SEO), an important strategy in digital marketing.
Explanation:
Search Engine Optimization (SEO) means optimizing the website structure, improve on keywords strategy and visual effects to increase the website's visibility, its ranking on search engine like google, bing, yahoo search .etc... and subsequently, push up the traffic volume to the website.
Your manager sends a letter to all department employees that explains a new overtime policy. What types of communication does this represent?
Answers
Answer:
c
Explanation:
9) Is homelessness ever a good thing? What exactly is a home?