A supplier has offered to sell the component to Carver for per unit. If Carver buys the component from the​ supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of annually. Assuming that Carver needs components annually and that the fixed manufacturing overhead is​ unavoidable, what would be the impact on operating income if Carver​ outsources?

Answer:

The low probability of achieving commercial objectives

Explanation:

Project failure is a term that describes the inability of a business to meet its objectives in terms of expected outcomes in relation to budget and time. The project failure can be a result of one or various factors.

Hence, various surveys on the early warning signs of project failure suggest that a red flag for failure actually indicates: The low probability of achieving commercial objectives.

Answer: In whole call

Explanation:

The yield basis is a method that is used to quote a fixed-income security price as a yield percentage. The yield basis allows bonds that has different characteristics to be compared easily. It is calculated when the coupon amount that is paid yearly is divided by bond purchase price.

The call covenant that must be considered when computing the dollar price of a municipal premium bond quoted on a yield basis is the in whole call. This is a form of callable bond whereby the entire issue will have to be called at once.

Answer:

Emotional Intelligence_____________has four components, including____Empathy______, which is the ability to connect to others, build positive relationships, respond to the emotions of others, and influence others. Managers with__low_______ emotional intelligence can undermine employee morale and hurt the organization.

Explanation:

Emotional Intelligence, according to Peter Salovey and John Mayer, is "the ability to monitor one's own and other people's emotions, to discriminate between different emotions and label them appropriately, and to use emotional information to guide thinking and behavior".

The components include self-awareness, self-regulation or control, internal motivation or self-motivation, empathy, and social skills.  The first three deals with the individual while the last two show how the individual relate with others.  Somebody can be said to possess at one extreme, high emotional intelligence or at the other extreme, low emotional intelligence.

Answer:

$100,000

Explanation:

Calculation for what would be the increase in contribution margin for this product

Using this formula

Increase in contribution margin= Contribution margin per hour of time × Extra hours

Let plug in the formula

Increase in contribution margin=$2,500×40 hours

Increase in contribution margin=$100,000

Therefore What would be the increase in contribution margin for this product will be $100,000

Answer:

The main conflict that results between planning and control use of budgets is that managers might place their own personal interests before the interests of the company. This might result in budgets that are easily achievable (resulting in bonuses) or shifting income from one period to another in order to achieve certain budgets that will result in bonuses.

I will use a real life example that happened to me to explain this. I worked as a B2B sales representative for a large corporation (we were only 2 B2B salespeople + 1 manager) and when sales were slowing down, upper management would set up bonuses for achieving certain sales goals. The problem was that intentionally certain large sales that required management's approval were delayed and total sales would fall. Then suddenly the bonus show sup and all the large sales were approved and in two weeks the sales goals were achieved. Since B2B sales are not about selling to a lot of customers, but instead selling to the right customers a lot of products, a couple of delayed big sales made a huge difference and a 1% bonus meant changing your old car for a new one.

Answer:

It is a good idea because recruiter, by their vast experience, are well equipped to understand the changes in the organization's workforce, and ultimately key and reflect this changes as a drive for organization success.

Explanation:

It is important to understand the concept of human resource planning in an organization. Human resources planning is basically the procedure that ensure an organization has the right set of people with the right skill set in a bid to achieve the organizational objective. Hence, a critical aspect of human resources planning is identifying and forecasting of the requisite workforce with the required skill set the organization needs.

Employers, who represent the bulk of hr team and thus spearhead the planning process, understand the imperative of a good and competent workforce. Hence, they follow and monitor trends in a bid to tap and key into the new ways and methods of doing things. So, when these recruiters note these changes, it's a good idea to reflect such in the hr planning.

Answer:

$40,133.63

Explanation:

we can use the future value formula:

future value = present value x (1 + interest rate)ⁿ

future value = $15,555 x (1 + 14.5%)⁷ = $15,555 x 1.145⁷ = $15,555 x 2.580111097 = $40,133.63

Answer:

d. The SEC is a private professional organization.

Explanation:

SEC stands for Securities and Exchange Commission. It is the United States of America's federal government agency which regulates the market laws.

The main function of this body is to maintain fair and efficient market, protect the investors and facilitate the capital formation.

All the companies must be  a part of the SEC agency as given by the federal law of the US.

Answer:

1. Material $1,490

Conversion $1,490

2. Material $1,490

Conversion $1,166

3.Cost of units transferred out $4,842

Cost of ending Work in process $1,838

4. $6,680

Explanation:

1.Computation of the Equivalent unit of production for material

Beginning Work In Process 400

Add Started during the year 1,090

Units to be accounted 1,490

Computation of the Equivalent unit of production for Conversion cost

Completed and transferred 950

(1,090+400 -540)

Add ending work in process 540

Units to be accounted for 1,490

2)Calculation for the unit costs of production for materials

Production units Materials

Completed& transferred 950 100% =950

Add Ending work in process 540 100%=540

Total 1,490 1,490

Calculation for the unit costs of production for conversion costs

Completed& transferred 950 100%=950

Add Ending work in process 540 40% =216

Total 1,490 1,166

3)Calculation for the assignment of costs to units transferred out and in process

Equivalent cost per unit Materials Conversion Cost Total

Beginning work in process

760 590 =1,350

Cost added during the year

2,630 2,700 =5,330

(1,590+1,110=2,700)

Total cost

3,390 3,290 6,680

÷Equivalent units of production 1,490 1,166

=Equivalent cost per unit

2.275 2.822

Cost of units transferred out=

950× (2.275+2.822)

Cost of units transferred out=950×5.097

Cost of units transferred out= 4,842

Cost of ending Work in process

Direct materials 540×2.275 =1,228

Conversion cost 216×2.822= 610

Total (1,228+610)= 1,838

4)Preparation of a production cost report for the month of July for the basketballs.

Production Cost Report

Direct Materials 1,350

Add cost added during the year 5,330

Cost to be accounted for 6,680

Cost to be accounted for

Cost transferred out 4,842

950× (2.275+2.822)

Add cost of ending WIP 1,838

Total 6,680

Answer:

a. Stock Price is $10.60.

b. Trailing P/E ratio is 3.53, while Leading P/E ratio is 3.33.

c. Present value of growth opportunitiesis -$9.28.

d .Stock Price is $15.85.

Explanation:

The following are given in the question:

ROE = 9%

b = beta = 1.25

pr = Plowback ratio = 2/3 = 0.67

dpr = dividend payout ratio = 1- pr = 1/3 = 0.33

e0 = This year’s earnings per share = $3

mr = The coming year’s market return = 14%

tr = T-bills return = 6%

We can now proceed as follows:

a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

The stock price can be calculated using the following formula:

P0 = Stock Price = d * (1 + g) / (r - g) …………………………. (1)

Where;

d = dividend per share = e0 / dpr = $3 / (1 / 3) = $1

g = Sustainable growth rate = ROE * pr = 9% * 2/3 = 0.06

rf = Risk free rate = Return on T-bills = 6%

b = Beta = 1.25

mr = Market return = 14%

r = Required return on Equity = rf + b * (mr - rf) = 6% + 1.25 * (14% - 6%) = 0.16

Substituting the values into equation (1), we have:

Stock Price = $1 * (1 + 0.06) / (0.16 – 0.06)

Stock Price = $1 * 1.06 / 0.10

Stock Price = $1 * 10.60

P0 = Stock Price = $10.60

b. Calculate the P/E ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Trailing P/E ratio = P0/E0 = $10.60 / $3 = 3.53

Leading P/E ratio = P0/e1 ………………………………………. (2)

Where;

e1 = e0 * (1 + g) = $3 * (1 + 0.06) = 3.18

Substituting the values into equation (2), we have:

Leading P/E ratio = $10.60 / 3.18 = 3.33

c. Calculate the present value of growth opportunities. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

P0 = e1 / r + pvgo …………………………………… (3)

Where pvgo denotes present value of growth opportunities, and P0, e1 and r are as already obatained in part a and b.

Substituting the values into equation (2) and solve for pvgo, we have:

$10.60 = $3.18 / 0.16 + pvgo

$10.60 = $19.875 + pvgo

pvgo = $10.60 - 19.875

pvgo = -$9.28

d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock.

g = ROE * pr = 9% * (1 / 3) = 3%

dpr = 1 – pr = 1 - 1/3 = 2/3

d = dividend per share = e0 / dpr = $3 / (2 / 3) = $2

Stock Price = d * (1 + g) / (r - g) = $2 * (1 + 3%) / (0.16 – 3%)

Stock Price = $2 * (1 + 3%) / (0.16 – 3%)

Stock Price = $15.85

Answer:

=>>> A common denominator is the dollar.

Answer is 7. Monetary unit assumption

=>>>All information that could affect decisions should be reported .

Answer is 9. Full - disclosure principle

=>>>Concerns the relative size of an item and its effect on decisions .

Answer is 4. Materiality

=>>>>Criteria usually satisfied for

products at point of sale

Answer is 5. Revenue recognition

=>>>Record expenses in the period the related revenue is recognized.

Answer is 1. Expense recognition

=>>>The enterprise is separate from its owner and other entities

Answer is 8. Economic entity assumption

=>>>The entity will continue indefinitely.

Answer is 6. Going concern assumption

=>>>The life of an enterprise can be divided into artificial time periods

Answer is 2. periodicity

=>>>The original transaction value upon acquisition

Answer is 3. Historical cost principle

Answer:

$1,632

Explanation:

Calculation for volume variance for SALES

Using this formula

Volume variance for SALES = (Actual units sold - Budgeted units to be sold) × Budgeted selling price

Let plug in the formula

Volume variance for SALES= (1,006 - 989)

×$96

Volume variance for SALES=17×$96

Volume variance for SALES= $1,632

Therefore the Volume variance for SALES will be $1,632

Answer:

a) a short position in a currency forward contract

Explanation:

If you have long exposure, then you hedge it with short exposure in forward market. In future options, you need to pay a premium, but in the forward market, you don't need to pay any premium and it can be customized.

Answer:

The answer is below

Explanation:

An internship experience is expected to an individual in his or her area of study. Hence, considering the field of study is in finance, the internship experience has helped me to develop the following personal strengths amongst others:

1. My analytical skills have improved

2. I have developed leadership skills

3. My problem-solving skills have greatly increased

4. I have developed self-management skills

5. My professionalism in terms of approach to work has been greatly influenced.

Answer and Explanation:

Data provided in the question

defect rate i.e. [tex]\bar p[/tex] = 1.50%

the sample size = n = 200

Now

[tex]S_p = \sqrt{\frac{\bar p (1 - \bar p)}{n} } \\\\= \sqrt{\frac{1.50\% (1 - 1.50\%)}{200} }[/tex]

= 0.008595057

Now the 3 sigma control limits is

UCL_p = [tex]\bar p[/tex] + 35p

= 0.015 + 3 (0.008595057 )

= 0.04078517

LCL_p = [tex]\bar p[/tex] - 35p

= 0.015 - 3 (0.008595057 )

= 0

hence, the 3 sigma control limits are UCL 0.04078517 and LCL 0 respectively

Answer:

FV= $3,330.25

Explanation:

Giving the following information:

Initial investment= $1,682.00

Number of periods= 14 years

Interest rate= 5% compounded annually

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

PV= present value

i= interest rate

n= number of years

FV= 1,682*(1.05^14)

FV= $3,330.25

Answer:

a. Staples used to bind magazines - Direct Material

The staples are integral to holding the magazines so is a direct material.

b. Wages of printing machine employees. - Direct Labor

The printing machine employees are directly related to the magazine's production as they print it.

c. Maintenance on printing machines. - Factory Overhead

This cost is not directly associated with the publishing of the magazine so is an overhead.

d. Paper used in the magazine. -Direct Material

Without paper, the magazine can not be published which makes it a direct material.

Answer:

$488,000

Explanation:

He capital expenditure balance indicates a $520,000 purchase of equipment.

September ending cash balance is budgeted at $67,000

The company wants to maintain a minimum cash balance of $35,000

Therefore the minimum cash loan to be borrowed from the bank can be calculated as follows

= $520,000-$67,000+$35,000

= $488,000

Hence, the minimum cash loan that must be planned to be borrowed from the bank during September is $488,000

Answer:

the minimum cash loan that must be planned to be borrowed is $418,000.

Explanation:

The Cash Budget is prepared to highlight times for cash surpluses - allowing arrangements for investments of those surpluses to gain maximum return.

The Cash Budget also highlight times for Cash deficit - allowing for short term alternative sources of finance.

September Cash Budget Reconciliation :

Purchase of Equipment                 $520,000

Less Cash Balance                          ($67,000)

Less Minimum Cash Balance         ($35,000)

Budgeted Loan Balance                 $418,000

Answer:

PV of Perpetuity = $5000

Explanation:

A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,

PV of Perpetuity = Cash Flow  /  r

Where,

PV of Perpetuity = 250 / 0.05

PV of Perpetuity = $5000

Answer:

$28,200

Explanation:

M Corp. benefit plan provides employees 15 paid vacation days and M estimated that there were 200 total vacation days and each employee can earn $141 per day. The amount of  liability for compensated absences can be calculated by multiplying the number of total vacation days with the wage per day

Liability = no. of days x wage per day

Liability = 200 days x $141

Liability = $28,200

Answer: official reserves

Explanation:

The official reserve account is simply part of capital account which has to do with securities and foreign currency that are being held by the central bank of a particular country and which are used to balance payments yearly.

It should be noted that when there's trade surplus, there'll be increase in reserves and when there is a deficit in trade, there'll be decrease in reserves.

Answer:

D. Reliance by the promisee on a promise to make a future gift does not make the promise enforceable unless injustice can be avoided only by such enforcement.

Explanation:

Promissory estoppel is the legal doctrine that is used to enforce promises, but in order for a promise to be enforceable, some requisites must exist:

Requisite number 4 does not exist in this case, therefore, the promise is not enforceable.

Answer:

Adjustments

1. Overallocated Manufacturing Overhead:

Debit Manufacturing Overhead

Credit Cost of goods sold

With the amount of overallocated manufacturing overhead.

2. Underallocated Manufacturing Overhead:

Debit Cost of goods sold

Credit Manufacturing Overhead

With the amount of underallocated manufacturing overhead.

Explanation:

When the manufacturing overhead is overallocated, the account has a credit balance.  To adjust the entry, the account is debited while the cost of goods sold is credited.  This reduces the cost of goods sold by the amount of the overallocation.  The opposite takes place with an underallocated overhead.  The purpose of the latter is to increase the cost of goods sold to reflect the overhead expense for the period.

Answer:

a. The monopoly will sell its good in the United​ States at $18.67.

b. The monopoly will sell its good in Japan at $8.52.

Explanation:

For any firm, profit is maximized where marginal revenue (MR) is equal to marginal cost (MC), i.e. where;

MR = MC ................................. (1)

For a monopolist, relationship between MR, the price elasticity of demand, and the price that gives maximum profits is given as follows:

MR = P(1 + 1/E) .................... (2)

Where P denotes price and E denotes elasticity of demand.

Since from equation (1) we have MR = MC, it also implies that from equation (2):

MC = P(1 + 1/E) .................... (3)

Equation (3) will now be used to solve this question when it can price discriminate and also impossible to resell as follows:

a. Calculation of monopoly price in the United​ States

Given;

MC = $7

E = -1.6

Substituting the values into equation (3) and solve for P, we have:

$7 = P(1 + 1/(-1.6))

P = $7 / (1 - 0.625)

P = $7 / 0.375

P = $18.67

Therefore, the monopoly will sell its good in the United​ States at $18.67.

b. Calculation of monopoly price in the Japan

Given;

MC = $7

E = -5.6

Substituting the values into equation (3) and solve for P, we have:

$7 = P(1 + 1/(-5.6))

P = $7 / (1 - 0.178571428571429)

P = $7 / 0.821428571428571

P = $8.52

Therefore, the monopoly will sell its good in Japan at $8.52.

Answer:

b. $50

Explanation:

Calculation for the total Late Fee Interest charged to the customers

Under 1 to 30 days Halifax Sporting Goods had $500

Hence,

1 to 30 days= $ 500 x 0%

1 to 30 days= $ 0

Under 31 to 60 days Eckhardt Design had $1,000

Hence,

31 to 60 days= $ 1,000 x 5%

31 to 60 days= $ 50

Under 61 to 90 days Walker Studios had $0

Hence,

61 to 90 days= $ 0 x 10%

61 to 90 days = $ 0

Under 90 days there is also $0

Hence,

90 days=$ 0 x 20%

90 days = $ 0

The Total Late Fee Interest

1 to 30 days= $ 0

31 to 60 days= $ 50

61 to 90 days = $ 0

90 days = $ 0

Total =$50

Therefore the total Late Fee Interest charged to the customers will be $50

Answer:

When you keep selling you will have a loss of $14000

And when you do not sell Product B you will have a profit of $ 8000.

So It is advisable to drop Product B.

Explanation:

ABC Corporation

Income Statement

                                 Total           A              B

Sales                      930,000   575,000       355,000

Variable Costs      507,000 267,000               240,000

Contribution Margin 423,000 308,000                115,000

Fixed Costs  

Manufacturing  375,000         225,000      150,000

Selling & Administrative

                             62,000          45000             17000

Total F. Costs 437,000        270,000           167,000

Opertng Income (loss)(14000) 38,000           (52,000)

ABC Corporation

Differential Analysis

          Keep Selling Does Not            Difference

                                                Keep Selling               Variances

Sales         930,000            575,000               (355,000)

Var. Costs       507,000  267,000                240,000

C. M                423,000         308,000                        (115,000)

Fixed Costs  

Manufacturing 375,000   255,000                 120,000  

Selling &

Administrative  62,000           45000                         17000

Total F. Cost    437,000   300,000                137,000

Oprting. P (loss) (14000)     8,000                       (22,000)

We see that when the company is selling Product B it has a loss of $ 14000 and when it does not sell Product B it has a profit of $ 8000. Therefore it is advisable to stop selling product B. If we look at the variances the Sales revenue decreases by $ 355,000 and so do the variable costs by $ 240,000.There is a decrease in the Contribution Margin but there is an increase in the net income so the Product B must not be sold.

Answer:

E. $148,600

Explanation:

Cash flow from operating activities.

Net income. $134,000

Add: Depreciation. $30,000

Less: Gain on sale ($4,000)

Changes in working

Capital

Add: decrease in

Accounts receivable $9,400

Less: increase in

Merchandise inv. ($18,000)

Less: increase in

Prepaid expenses ($6,200)

Add: increase in

Accounts payable $3,400 ($14,600)

Net cash provided used by $148,600

Operating activities

Answer:

Points of difference

Explanation:

The point of difference means the factors that created the differentiation with respect to the product and services. Here, differentiation means that the company products are differentiated from that of the competitors. It could be done with the quantity, price, quality, etc

Therefore according to the given situation, the term we called as a point of difference and the same is to be considered

Answer: with any existing customer who is a resident of Illinois and is on vacation anywhere in the United States.

Explanation:

A broker-dealer is an economic agent that purchases and also sells securities for either its own account or transacts on behalf of its customers.

A broker-dealer that is registered in Illinois and that is not registered in any other State may effect transactions in securities with any existing customer who is a resident of Illinois and is on vacation anywhere in the United States.

Answer:

Express.

Explanation:

The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.

A warranty can be defined as a written promise or guarantee made by a manufacturer, lessor or seller about the identity or quality of goods and services or a property to a purchaser, promising him or her to repair or replace it if necessary within a specified time frame.

The Uniform Commercial Code ("UCC") recognizes explicit, stated promises as being express warranties. An express warranty is typically considered to be an affirmative promise about the quality or characteristics of an item that is being sold to a buyer and as such it is binding and enforceable by law.