Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances: direct labor rate variance = $33,000 favorable (F); direct labor efficiency variance = $65,000 unfavorable. Sheldon allows 4 standard direct labor hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 20% more direct labor hours than the standard allowed for the units produced.

How many units of the product were produced during the past month (rounded to the nearest whole number)?

Multiple Choice

1,950.

3,250.

1,625.

2,275.

2,600.

Answers

Answer 1

The number of units produced during the past month is 1625. The correct answer is option C.

To find the number of units produced during the past month, we can use the formula:

Standard direct labor hours allowed for actual production = Actual direct labor hours used - Direct labor efficiency variance / Standard direct labor hourly pay rate

Plugging in the given values:

4x = 1.2(4x) - $65,000 / $50

Simplifying:

4x = 4.8x - 1,300

Rearranging:

0.8x = 1,300

x = 1,625

However, this is not the final answer. The question asks for the number of units produced during the past month, which is represented by the standard direct labor hours allowed for actual production divided by the standard direct labor hours per unit:

Standard direct labor hours allowed for actual production / Standard direct labor hours per unit = Number of units produced

Plugging in the values:

(1.2(4x) - $65,000 / $50) / 4 = Number of units produced

Simplifying:

(4.8x - 1,300) / 4 = Number of units produced

1.2x - 325 = Number of units produced

1.2(1,625) - 325 = Number of units produced

1,950 - 325 = Number of units produced

1,625 = Number of units produced

Therefore, the correct answer is 1,625 units. (Option C)

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Related Questions

Which of the following statements are true about the 3x3 metrics? Select all that apply

Answers

Based on the information given, the following statements are true about the 3x3 metrics:

It does not include the Service-level Agreements (SLAs) of the process.It includes metrics that are static over a period of time.

What is 3x3metrics?

3x3 metrics is a process improvement methodology that involves identifying and tracking three critical success measures (CSMs) across three levels of a process. The goal of this methodology is to simplify the measurement and analysis of process performance, while also providing a clear focus on the most important measures of success.

The three levels of the process are typically defined as input, throughput, and output, and the three CSMs are chosen based on their importance to the overall success of the process. By tracking these metrics over time, teams can identify areas for improvement and implement changes to drive better performance.

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complete question

Which of the following statements are true about the 3x3 metrics? Select all that apply. Question 2 options: It includes the three most vital metrics (speed, cost and quality) for our customer outputs. It does not include the Service-level Agreements (SLAs) of the process. It includes metrics that are static over a period of time. It helps the client understand the scope of improvement in a process. It helps the Delivery team focus on the critical success measures

Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 6 percent per year, indefinitely. The required return on this stock is 12 percent and the stock currently sells for $94 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

$26.86

Explanation:

Calculation to determine the projected dividend for the coming year

First step is to calculate the Dividend(D0)=

D0 = $94 * 0.12

Dividend(D0)= $11.28

Second step is to calculate the Expected Dividend growth rate for 3 years (D3) using this formula

Expected Dividend growth rate for 3 years (D3) =D0 (1+g)

Let plug in the formula

D3=$11.28* (1+0.25)^3

D3=$22.03125

Third step is to calculate Dividend in 4th year(D4

Dividend in 4th year(D4)=$22.03125 *1.15

D4 =$25.3359

Now let calculate the Dividend in 5th year(D5

Dividend in 5th year(D5)=$25.3359 * 1.06

Dividend in 5th year(D5)=$26.86

Therefore the Projected Dividend for the coming year will be $26.86

Supply and Demand Equilibrium A graph titled Supply and Demand equilibrium has quantity on the x-axis and price on the y-axis. Line A has a positive slope and line B has a negative slope. The 2 lines intersect at point C. Match each term with the correct part of the graph. Demand curve Supply curve Equilibrium point

Answers

C is the point in the graph  refers to the equilibrium price. Because the equilibrium demand and supply have produced this point, it is known as the equilibrium price.

What is equilibrium?

Economic equilibrium is the set of economic variables that drives the economy, such as supply and demand. The term "economic equilibrium" can be used to a variety of variables, including interest rates and total consumer expenditure.

C point refers as equilibrium price produced by the demand and supply mention on X and Y axis respectively.

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Answer:

c

Explanation:

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends in arrears for preferred stock for the second year. a.$10,000 b.$25,000 c.$30,000 d.$0

Answers

Answer:

Option b is correct

Arrears preference dividends = $25,000

Explanation:

Preference shareholders are entitled to a fixed amount of dividends.

Cumulative preference shares: Cumulative simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year.

                                                                                        $

Preferred dividend in year = 2%× 100× 20,000=    40,000

Preferred dividend in year 2 = 2%× 100× 20,000=   40,000

Total dividend accrued to preference shares         80,000

Less  total dividend paid in year 1 and 2                  55,000

Arrears preference dividends                                 25,000

Arrears preference dividends = $25,000

"Drag each label to the correct location on the image.
Match the features to the relevant inventory systems.
records purchase of inventory
in the purchase account records purchase of inventory
in the inventory account
inventory account is updated on inventory account is updated every purchase at the end of a time period
inventory is physically counted Perpetual Inventory System
Periodic Inventory System"

"Drag each label to the correct location on the image.Match the features to the relevant inventory systems.records

Answers

Each features should be matched to the relevant inventory systems as follows;

Perpetual Inventory System: records purchase of inventory in the inventory account.Periodic Inventory System: records purchase of inventory in the purchase account records.Perpetual Inventory System: inventory account is updated on every purchase.Periodic Inventory System: inventory account is updated at the end of a time period.Periodic Inventory System: inventory is physically counted.

What is an inventory?

An inventory can be defined as the raw materials or items that are used by a business firm (manufacturer or producer) for the manufacturing of finished goods, as well as goods that are in various stages to be made ready for sale to consumers.

What is a perpetual inventory system?

In Economics, a perpetual inventory system is sometimes referred to as perpetual system of inventory and it can be defined as a method of financial accounting that typically involves updating information about an inventory on a continuous basis (in real-time) as the sales or purchases are being made by customers, especially through the use of enterprise management software applications and a digitized point-of-sale (POS) equipment.

Furthermore, an advantage of the perpetual inventory system (perpetual system of inventory) over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, theft, etc.

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HELPPP MEEEEE
I NEED HELP, I DONT KNOW HOW TO ANSWER

HELPPP MEEEEE I NEED HELP, I DONT KNOW HOW TO ANSWER

Answers

When you use a debit card to make a purchase, the transaction is finished when the funds are immediately removed from your checking account. Nothing, whether good or negative, is reported to the credit agencies or shows up on your credit report.

What transpires if a debit card debt is incurred?

You can lose any advantages, privileges, or discounts linked to your bank account if you accrue this form of debt in addition to having a bad effect on your credit score.

Does debt from debit cards impact credit score?

While using a debit card, you use your own money, whereas when using a credit card, you use cash from a credit line that has been authorized by the credit card provider. Debit cards don't count toward your credit usage ratio, so closing your account or switching banks won't have an impact on your credit score.

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The below two statements are related to mindfulness
a. It is not obscure or exotic.
b. It is evidence-based.

TRUE
FALSE

Answers

It is true that mindfulness is evidence based and false that it is exotic.

What is mindfulness?

Mindfulness. It's an easy term to understand. It implies that the mind is entirely focused on what is taking place, what you are doing, and the environment you are moving through. That might sound insignificant, but it annoys me that we frequently stray from the topic at hand. When our mind wanders, we get disconnected from our physical selves and quickly become preoccupied with compulsive thoughts about the past or worry about the future. And it stresses us out.

However, awareness is always present to bring us back to where we are, what we are doing, and how we are feeling, no matter how far we go. It's great to give mindfulness a go for a time if you want to understand what it is. You will discover tiny variances in the meaning in books, online, audio, and video since it's difficult to put into words.

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Barnes books allows for possible bad debts. On may 7, barnes writes off a customer account of $7,000. On september 9, the customer unexpectedly pays the $7,000 balance.

Answers

The graphic below shows the details of the cash collection on September 9 that had been noted as a bad debt.

The organised record of every accounting transaction is a journal entry. It is the initial phase of accounting transaction recording. It displays every transaction that was done throughout the accounting period. Barnes Books allows for later-recoverable bad debts in the scenario described. On May 7, the business deducts a customer account. The client unintentionally settles the $7,000 amount on September 9. The figure below then shows the journal entry for receiving the bad debts amount on September 9. The graphic below is a record of the cash collected on September 9.

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Congress passed the Sarbanes-Oxley Act to

Answers

to… help protect investors from fraudulent financial reporting by corporations

Answer:

make sure auditors don't lie to investors saying the companies they are auditing are successful if they are not . year 2002

Explanation:

made rules for how managers and auditors control and report company finances

in 2001 company Enron was internally fabricating financial records and falsifying the success of its company. Arthur Andersen was the auditor telling investors that the company was successful even though it wasn't . sarbanes oxley act came from this

enron went out of business

Arthur Andersen was punished & became Accenture

1. Describe the benefits of good strategic planning? Define and give examples of key terms of strategic management?

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(5 mark)

2. Explain the concept of SBU in a multi business organization. Identify the three levels of strategy-corporate, business and functional. How do goals and objectives vary at each level?

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(5 marks)



3. What should be the key trait of a CEO? What are the forces that design the strategic management system?

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(5marks)

4. Discus the various grand strategies at the corporate level. Stability, growth and retrenchment.

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Answers

Answer:1. Never Give up

DO THE REST YOUR SELF

Explanation:

in the cash book, every cash receipt is______ and every cash payment is_______ ​

Answers

On the left, on the right

Using the service blueprint, make a list of all the potential key service failure points and the associated customer expectations. For example a service failure point with expectations is: check-in should be fast and hassle free. You should find 10 to 15 service failure points.

Answers

Using a service blueprint, a list of potential key service failure points and their associated customer expectations would depend on the industry and the customer preference.

What are some potential key service failure points ?

Some general key service failure points would include:

Check-in should be fast and hassle-free.Staff should be knowledgeable and able to provide accurate information.Service should be delivered within the promised timeframe.Billing and payment processes should be transparent and error-free.Facilities should be clean, well-maintained, and comfortable.Communication should be clear and timely, keeping customers informed about any delays or changes.Staff should be friendly, courteous, and attentive to customer needs.Resolving complaints and addressing issues should be handled promptly and effectively.Product or service quality should meet or exceed customer expectations.Personal data and privacy should be protected and kept secure.Service should be personalized and tailored to individual customer preferences when possible.Any service disruptions or interruptions should be minimized and resolved quickly.Accessibility should be ensured for customers with special needs or disabilities.Service recovery actions should be proactive and designed to restore customer satisfaction after a service failure.Any additional fees or charges should be clearly communicated upfront to avoid surprises.

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What type of entrepreneurial activity would you engage in?

Answers

One that would be beneficial to myself and my family.

In 2020, a company receives advance payments from its customers. The company will deliver the products in 2021. At the end of 2020, the company will __________ related to this transaction (enter 1, 2, 3, or 4 that represents the correct answer).

1. record a deferred tax asset

2. record a deferred tax liability

3. have a permanent difference

4. report no difference between financial income and taxable income for 2020.

Answers

Answer:

In 2020, a company receives advance payments from its customers. The company will deliver the products in 2021. At the end of 2020, the company will ____1______ related to this transaction (enter 1, 2, 3, or 4 that represents the correct answer).

1. record a deferred tax asset

Explanation:

For having paid income tax in 2020 on the cash received for deferred revenue, the company will record a deferred tax asset.  This deferred tax asset will then be offset in 2021 when the sales revenue will be recorded according to the financial income accounting.  Deferred tax asset arises from the overpayment or advance payment of taxes.  The opposite of a deferred tax asset is called a deferred tax liability, representing income tax owed, which will be settled in the coming years.

Suppose that the Federal Reserve Bank announces that it will be making a change to a key interest rate to increase the money supply. This is likely because
Group of answer choices

A.)the Federal Reserve Bank is worried about inflation.

B.)the Federal Reserve Bank is worried about unemployment.

C.)the Federal Reserve Bank is hoping to reduce the demand for goods and services.

D.)the Federal Reserve Bank is worried that the economy is growing too quickly.

Answers

Answer:

A.)the Federal Reserve Bank is worried about inflation.

Explanation:

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Question 2 of 10
What is one benefit of buying preferred stocks?
A. Preferred stocks are easy to evaluate.
B. Preferred stocks are low risk.
C. Preferred stocks have a predictable long-term performance.
D. Preferred stocks tend to grow with the economy.

Answers

Preferred stocks have a predictable long-term performance. Option C

The benefit of buying preferred stocks

Preferred stocks offer several benefits compared to common stocks, and one of them is their predictable long-term performance.

Preferred stocks typically have a fixed dividend rate, which means that the investors know in advance the amount of dividend they will receive. This predictability can be appealing to investors who prefer a stable income stream.

.

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A craft shop buys stuffed animals with a list price of $7,000. If the wholesaler offers trade discounts of 35/35/35, find the net price factor.
• 0.04288
• 0.21600
• 0.27463
• 0.34300

Answers

Based on the wholesale trade discounts offered by the seller to the craft shop that buys stuffed animals, the net price factor is 0.27463

What is the net price factor?

First, find the difference between 100% and the trade discounts:

= 100% - 35%

= 65%

The difference is 65/65/65.

To find the net price factor, multiply these differences:

= 0.65 x 0.65 x 0.65

= 0.274625

= 0.27463

In conclusion, the net price factor based on the trade discounts offered of 35/5/35 and a list price of $7,000 is 0.27463.

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5 of 100
Harry is looking at buying a building that has a monthly income of
$3,600, a 5% vacancy rate, and annual expenses of $8,640. He is
expecting a 12% return on his investment. How much should he pay for
this building?

Answers

The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

What do you mean by investment?

Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.

As per the information,

The vacancy rate is given is 5%

The occupancy rate is 100 - 5= 95%

\(\rm\,The\,Net \,Income = Occupancy \, Rate \times Income - Expenses\\\\ \rm\,The\,Net \,Income = (95\% \times 3,600 \times 12) - 8,640\\\\ \rm\,The\,Net \,Income = \$32400\)

Now, if it is assumed that the income is earned forever, then the present value of the income will be

PV of net income = A/r

A- 32400 , r - 12%

                           \(\rm\,PV = \dfrac{32400}{0.12}\\\\\\PV = \$270000\)

Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

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This question is about marketing management.

Answers

what is a business plan?

sandra would like to organize lab (a legal corporation) as either an s corporation or a c corporation for tax purposes. in either form, the entity is expected to generate an 8 percent annual before-tax return on a $775,000 investment. sandra's marginal income tax rate is 37 percent and her tax rate on qualified dividends and net capital gains is 20 percent. lab's income is not qualified business income (qbi), so sandra is not allowed to claim the qbi deduction. assume that lab will distribute all of its earnings after entity-level taxes every year. ignore the additional medicare tax and the net investment income tax when computing your answers.

Answers

The tax implications of organizing Lab as an S Corporation or a C Corporation would depend on the type of income generated by the corporation and the tax rates applicable to that income.

For an S Corporation, the business income is passed through to the shareholders, and they are taxed on their personal tax returns at their marginal tax rate. In this case, Sandra would be taxed on her share of Lab's income at a 37% marginal tax rate.

For a C Corporation, the business income is taxed at the corporate level before being distributed to the shareholders as dividends. The corporate tax rate is 21%, and the qualified dividends and net capital gains are taxed at a rate of 20% for individual taxpayers.

Assuming an 8% return on a $775,000 investment and ignoring entity-level taxes, the annual income would be $62,000. If Lab is organized as an S Corporation, Sandra would pay $22,940 in personal income taxes ($62,000 * 37%). If Lab is organized as a C Corporation, the corporate taxes would be $12,930 ($62,000 * 21%) and Sandra would pay $12,400 in individual taxes on the dividends received ($62,000 * 20%).

In this case, organizing Lab as an S Corporation would result in a higher tax liability for Sandra compared to organizing it as a C Corporation. However, the best option would depend on Sandra's personal financial situation and other factors, such as the type of income generated by the corporation and the tax implications of the different forms of business organization.

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explain all the dimensions of Management functions in Human Resource management

Answers

Answer:down

Explanation:The four dimensions of human resource management practices are: Managing The Human Resource Environment, Acquisition and Preparation of Human Resources, Assessment and Development of Human Resources, and Compensation of Human Resources as stated by Noe et al (2010).

Answer: HR managers carry out a variety of tasks to ensure a business runs smoothly. The various dimensions of management functions in Human Resource management are as follows:

Explanation:

a. Planning

Planning for various things, from the hiring process to training and development programs, is the most crucial duty of an HR manager. Planning lays the foundation for other HR management responsibilities, such as determining job qualifications and the organization's need for recruitment.

b. Organizing

An HR manager is responsible for performing this role after the planning phase (discussed above) is finished. To meet the requirements and wants of the workforce while achieving business goals, they must create strategies and programs.

c. Directing

To carry out the goals and plans they have developed, HR managers need personnel. As a result, they lead their teams in a way that carries out the manager's goals and strategies. They assign tasks to the team members and keep tabs on their performance to assess their progress.

d. Controlling

One of the most significant managerial duties and obligations of an HR manager is this. In doing so, the HR manager monitors deviations, corrects them, and compares the results to the objectives. This entails tasks like audits and appraisals.

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Which function of the S&P Capital IQ Excel plug-in allows users to extract company data directly from CapIQ’s database and calculate the desired financial metrics using the CapIQ formulas?​

Answers

Answer:

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A template is a function of the S&P Capital IQ Excel plug-in that allow users to extract company data directly from CapIQ’s database and calculate.

What is the S&P Capital IQ Excel plug-in?

The S&P Capital IQ Excel plug-in is a software program that is designed and developed to provide several comprehensive templates that can be customized for specific usage.

Basically, a template is a function of the S&P Capital IQ Excel plug-in which avails end users an ability to directly extract company data from CapIQ’s database, as well as to calculate the desired financial metrics while using the CapIQ formulas.

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What force have caused cost and management accounting system designed decade's ago to become less relevance and less valuable for organizational employee's in today's global competitive environment.

Answers

Answer with its Explanation:

The forces that had lessened the importance of the cost and management accounting systems in today's dynamic world are as under:

The ancient bookkeeping and the costing techniques were very time consuming and the accounting systems were also not integrated with the financial accounting systems. Today we have very robust and integrated systems which helps the management of the business operations nation wide with greater security and better performance than the previous old versions.The complexity of the organization operations have resulted in origination of additional management accounting techniques that were adapted in the form of automated software, that are used to produce management reports on daily, weekly, monthly and yearly basis. The examples include the Throughput costing, Activity based costing, Bench-marking techniques, etc.The activities automation has led to attaining of maximum efficiency possible in some areas which wasn't possible in the past. The robots management systems, activity automation, etc has increased the fixed cost share in the total cost and the variable cost has become a very minute share of the total cost of the activity. This variable cost which is often referred to as controllable cost, is very less in percentage share of total cost today than 10 years back. In the future, we will see it as a very very very small share of total cost. This makes the today's management costing techniques obsolete and requires new solutions, new techniques, new softwares, etc. to manage the companies operations.

If labor becomes more productive, the production possibilities frontier will:__________

Answers

Answer:

Shift outwards.

Explanation:

The production possibilities frontier or curve is the curve that shows various combinations or bundles of goods that an economy produces by using its all resource and if there is any point inside the curve then it will depict the inefficiency or underutilization of resources. Moreover, the PPF curve shifts outwards when there is an improvement in technology, due to which the output has increased. Similarly, the increase in output due to labor productivity will result in the rightward shift in the PPF curve.

You charge $500 on each of your two credit cards.
One is American Express with an interest rate of 15.99%.
The other is Chase Sapphire with an interest rate of
20.99%. Assuming that you are only making the minimum
payment of $25 to each of the credit card companies,
which card will you pay off first

Answers

It is advisable to pay off the Chase Sapphire card first to minimize the overall interest paid.

To determine which credit card to pay off first, we need to consider the interest rates and the minimum payment amounts. Let's calculate the interest accrued on each card and compare the total amounts.

For the American Express card with a balance of $500 and an interest rate of 15.99%, the interest accrued per month would be (15.99/100) * (500) = $79.95. With a minimum payment of $25, the remaining balance after the payment would be $500 - $25 = $475.

For the Chase Sapphire card with a balance of $500 and an interest rate of 20.99%, the interest accrued per month would be (20.99/100) * (500) = $104.95. After making the minimum payment of $25, the remaining balance would be $500 - $25 = $475.

Comparing the two cards, we see that the interest accrued on the Chase Sapphire card is higher ($104.95) compared to the American Express card ($79.95). Therefore, it is advisable to pay off the Chase Sapphire card first to minimize the overall interest paid.

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If your manager were to give you a complex project that involved a lot of research and analysis to provide information to write a detailed and accurate report, how might you make it more manageable? What type of communication skills would that require? Please write at least 5 sentences.

Answers

A large project report can be easier to manage if the key components are first outlined as a thesis statement and the duties are divided into manageable chunks.

A report is what?

A report is a written statement or document that outlines the major problems or happenings inside an organization and aids in understanding the internal and external forces at play.

It's crucial to have written communication abilities that enable someone with a strong vocabulary to precisely communicate the notion to the reader in order for a report to be effective and correct.

It is necessary to create an outline plan for the task that needs to be done since it aids in framing the report aspects when a project report requires extensive research and analysis to deliver information.

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If economies of scale are so pronounced in an industry that only one firm can survive in the industry, this firm is called a(n) __________ monopoly.

Answers

Answer:

The answer is a natural monopoly

Explanation:

A natural monopoly is one of the forms monopoly that exists due to the high capital needed or powerful economies of scale of conducting a business in a specific industry. A natural monopoly will naturally have very high fixed costs, meaning that it is almost impossible to have more than one firm producing the good.

A firm that is blessed with a natural monopoly might be the only provider of a product or service in an industry or geographic location. Example of natural monopoly is the electricity grid.

Trevor Company discloses supplementary operating segment information for its three reportable segments. Data for 20X8 are available as follows:
Segment A Segment B Segment C
Sales $500,000 $300,000 $200,000
Traceable operating
expenses 250,000 120,000 90,000
Allocable costs for the year was $180,000. Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total income before allocable costs. The 20X8 operating profit for Segment B was:_______.
A) $180,000.
B) $120,000.
C) $126,000.
D) $110,000.

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Segment A Segment B Segment C

Sales $500,000 $300,000 $200,000

Traceable operating expenses 250,000 120,000 90,000

Profit= 250,000  180,000  110,000  = 540,000

Allocable costs for the year was $180,000.

First, we need to allocate costs to Segment B:

Segment B= 180,000/540,000= 0.33

Allocate= 0.33*180,000= 60,000

Now, we can calculate the profit:

Segment B profit= 180,000 - 60,000= 120,000

Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at generating a return for investors who have provided capital (bondholders and stockholders). The ROIC calculation answers three questions: How tax efficient is the firm? How effective are the firm’s operations? How intensively does the firm use capital? Comparing the answers to these questions between firms can help you understand why one firm is more profitable than another and where that profitability is coming from.
In the following, Apple’s ROIC is compared to Blackberry’s. The income statement and balance sheet are provided for both firms. While the ROIC calculation for Blackberry is completed below, you have to complete the calculation for Apple by supplying the correct income statement and balance sheet information. As you fill in this information, the components of Apple’s ROIC will be
calculated along with some supporting ratios. Use these subcomponents and supporting ratios to compare Apple and Blacberry’s performance. Where does Apple’s advantage come from?
This activity demonstrates the calculation of ROIC and the comparison of firm performance, supporting Learning Objective 5-1 and 5-2.
Instructions
Use the income statement and balance sheet information for Apple to fill in the missing items in the calculation of Apple’s ROIC and supporting ratios. Once filled in correctly, compare Apple’s performance to that of Blackberry. Where does Apple have an advantage? Where does Blackberry have an advantage?
Apple, Inc. Blackberry
Income Statement YE Sept 2012 YE Mar 2012
Net sales 156,508
Cost of sales 87,846
Gross margin
Research & development expense 3,381
Selling, general & admin expense 10,040
other operating 0
Total operating expenses
Operating margin
Interest & dividend income 0
Interest expense 0
Other Income / Expense 522
Total Other income
Earnings before taxes
Provision for taxes 14,030
Net income (loss)
Short-term marketable securities
Components 0 Inventories 791 Total current assets
Long-term marketable securities
Other assets
18,423
11,848
1,559
2,600
930
0
0
21
354
Balance sheet YE Sept 2014 YE Mar 30 2012
Cash & cash equivalents 10,746 247
Accounts receivable 10,930 0
Finished goods 0 1,027
68,662
13,421
55,241
522
55,763
41,733
6,575
5,089
1,486
21
1,507
1,153
1,527 3,062 0 1,208
2,733
0 2,645
0
Apple Inc Microsoft Corporation
18,383
Other Current Assets 16,803
Fixed Assets: PP&E (net) 15,452 3,927
0 102,959
57,653
176,064
38,542
19,312
7,071
13,731
3,389
0
Long term assets 6,660
Total assets
Accounts payable Deferred revenue
Total current liabilities Long-term debt
Deferred tax liabilities Other long-term liabilities Long-term liabilities
21,175 0
0 0
Accrued expenses 11,414 0
744
other 5,953
Deferred revenue - non-current 0 0
0
Other non-current liabilities 19,312 242
Total long-term liabilities 242

Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at

Answers

Here is the ROIC calculation for Apple, Inc.:

The ROIC calculation

Net income (loss) $14,030

Interest expense $0

Taxes $14,030

Net operating profit after taxes $28,060

Average invested capital $176,064

Return on invested capital (ROIC) 15.9%

The following table compares Apple's ROIC to that of BlackBerry:

Company | ROIC

------- | --------

Apple | 15.9%

BlackBerry | 4.9%

As you can see, Apple's ROIC is significantly higher than BlackBerry's. This is due to a number of factors, including Apple's higher gross margin, operating margin, and net income.

Apple also has a lower tax rate than BlackBerry, which helps to boost its ROIC.

Here are some of the reasons why Apple has an advantage over BlackBerry:

Apple has a stronger brand and a more loyal customer base.Apple's products are more innovative and user-friendly than BlackBerry's products.Apple has a more efficient supply chain and a more effective marketing strategy.

Blackberry does have some advantages over Apple, such as its strong security features and its experience in the enterprise market. However, these advantages are not enough to offset Apple's overall advantages.

Overall, Apple is a more profitable company than BlackBerry. This is due to a number of factors, including Apple's strong brand, innovative products, efficient supply chain, and effective marketing strategy.


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Question 6 of 10
A risk response plan lists your risks, including identified risk causes, description, and
Select an answer:
potential impacts
why the risk can't be avoided
your sponsor's assignee to handle risk
issue register

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A risk response plan lists your risks, including identified risk causes, descriptions, and Option A. potential impacts.

The Risk Response Planning is a process that recognizes potential risks, assesses them, and establishes management plans to reduce or prevent them. Risk response plans should describe the expected outcome of each response action, any significant input from stakeholders, and the time and resources required to carry out the response. A risk response plan typically includes the following sections:

Risk Management Plan Preparation - This section provides guidance for preparing the risk management plan's remainder. It describes the recommended contents of the risk management plan and the recommended process for preparing it.

Risk Identification - This section identifies risk sources that might cause a negative outcome for the project. It also provides a risk identification checklist that the project team can utilize as a starting point for identifying risks.

Risk Analysis - This section analyzes each identified risk's potential impact on project success by estimating the probability of occurrence and the potential effect on the project's objectives.

Risk Response Development - This section outlines the strategies and actions for managing risks. It includes contingency plans for high-priority risks and an implementation plan for all other risks.

Risk Response Control - This section describes how to evaluate the effectiveness of the risk response strategy, establish contingency plans, and implement corrective action as needed.

Risk response plans should be developed in collaboration with stakeholders to ensure that the project's risks are addressed appropriately. In addition, they should be reviewed regularly and updated as necessary throughout the project. The most important part of any risk response plan is the risk response strategy, which describes the specific actions to be taken in response to each identified risk. Therefore, the correct option is A.

The question was incomplete, Find the full content below:

Question 6 of 10

A risk response plan lists your risks, including identified risk causes, descriptions, and

Select an answer:

A. potential impacts

B. why the risk can't be avoided

C. your sponsor's assignee to handle risk

D. issue register

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