A company's ratio of liabilities to stockholders' equity decreased from 0.6 to 0.4 during the year. This is a.an improvement in the margin of safety for creditors. b.an indication that the company's level of debt is increasing. c.a negative change in the company's financial position. d.an improvement in the company's net income.

Answers

Answer 1

Answer:

A)an improvement in the margin of safety for creditors.

Explanation:

Margin of safety can be regarded as a principle of investing whereby an investor only make purchases of securities during the time when the market price is below their intrinsic value significantly. In a case whereby

the market price of a security falls below ones estimation of its intrinsic value significantly, then the difference that exist there is regarded as margin of safety. Margin of safety can as well be regarded as financial ratio which gives measurement of the amount of sales which exceed the break-even point. Most times investors may create a margin of safety with regards to their own risk preferences, purchasing of securities in a time that there is a difference give room for an investment to be made with minimal downside risk.

For instance, company's ratio of liabilities to stockholders' equity decreased from 0.6 to 0.4 during the year.


Related Questions

g. provides the following information for 20X8: Net income $260,000 Market price per share of common stock $60 per share Dividends paid $200,000 Common stock outstanding at Jan. 1, 2018 150,000 shares Common stock outstanding at Dec. 31, 2018 230,000 shares The company has no preferred stock outstanding. Calculate the price/earnings ratio of common stock.

Answers

Answer:

53.09

Explanation:

The price/earnings ratio of common stock is an investment ratio that compares the current price of the stock to its earnings per share, in a bid to assess the stock performance relative to its earnings

share price=$60

earnings per share=net income/year-end shares outstanding

net income=$260,000

year-end outstanding shares=230,000

earnings per share=$260,000/230,000

earnings per share=$1.13

price/earningsratio=$60/$1.13

price/earningsratio=53.09

Năm trước, doanh thu đạt được 1 triệu $, trong đó 250.000 là doanh thu bán chịu; số dư khoản phải thu khách hàng trung bình là 41.096$. Năm nay, công ty kỳ vọng doanh thu sẽ tăng thêm 50%, tỷ lệ doanh thu bán chịu/doanh thu không đổi, kỳ thu tiền bình quân tăng 50% (giả sử một năm có 365 ngày). Nếu khoản phải thu tăng thêm được tài trợ từ bên ngoài (chẳng hạn như vay ngân hàng) thì công ty cần thêm nguồn tài trợ này là bao nhiêu?

Answers

punda mavana Umbi. posddajh jzushl Unni Sunni nayye mayiru

Allie, a human resource manager at an electronics firm, observes that many employees who are reaching the traditional retirement age are not interested in leaving the organization. Which statement best explains the reason for this trend among older employees?
A) There are laws against gender discrimination.
B) There is a rise in the availability of pensions.
C) Jobs are becoming less physically demanding.
D) Phased-retirement programs require employees to work longer hours.
E) Older workers generally don't have much debt.

Answers

Answer:

C) Jobs are becoming less physically demanding.

Explanation:

Since in the question it is mentioned that at the time when the employee reaches to the retirement age so they are not interested in leaving the organization as they dont want to search for a new job also they are happy with the current job. In addition to this, jobs are very less physical demanding because of their ages

Therefore the option c is correct

Describe the events that occur in an efficient market in response to new information that causes the expected return to exceed the required return. What happens to the market value

Answers

Answer:

The efficient market hypothesis tells, in an equilibrium, the price of stocks or security is an unbiased estimate of the true values.

Explanation:

Thus, in the equilibrium,  of security prices are neither an overvalued nor are undervalued. Suppose the investors learn new information about the company that suggests there stock is worth more than the current price.  The security gets undervalued expected return exceeds the required return. Increased in demand for security from the investors with this new information will thus bid up the market value plus reduce its expected return until they are equal.

A production process has six subsequent stages, each with their own specific resources and performing crucial tasks. Four of these stages have a capacity of 20 units per hour, while the other two stages have a capacity of 10 units per hour. What is the best conclusion?

Answers

Answer: Both stages with a capacity of 10 units per hour can be considered bottlenecks.

Explanation:

From the information given in the question, the best conclusion is that both stages with a capacity of 10 units per hour can be considered the bottlenecks.

It should be noted that the bottleneck in the chain of processes, is the one that has the limited capacity and this then reduces the capacity of the whole chain and slows down production.

3. Prime Cuts was the brainchild of Cairn Terrier who guided all the marketing efforts of the product. She selected each element of the marketing mix such as the package, brand name, pricing, promotion, and placement decisions. Karen obviously serves in the job of:

Answers

Question Completion with Options:

A) marketing consultant.

B) brand manager.

C) operations analyst.

D) marketing intermediary

Answer:

Prime Cuts

Karen obviously serves in the job of:

A) marketing consultant.

Explanation:

Brand managers ensure that the image perceived by customers of Prime Cuts remains recognizable, up to date, and exciting.  Brand managers promote and change the public perception of a brand's image. They ensure that the company's branding is consistent across advertising and other brand campaigns.  A marketing consultant or manager ensures that prospective customers are reached with Prime Cuts in order to present them with the goods and to increase sales.  She works to achieve effective marketing mix.

Blazing Woman, a large music festival wants to secure a venue for its show coming up in two years. 19 months before the festival it enters into an agreement with Stonestock Farms. They shake hands on it, but do not write or sign any type of formal agreement. Eight months later Stonestock notified Blazing Woman that they decided against allowing their farm to be used. Can Blazing Woman enforce the agreement with the Stonestock even though it was not in writing

Answers

Answer:

No. Because the contract cannot be fully performed within a year of its creation, R is within the statute of frauds.

Explanation:

Since in the question it is mentioned that there is no written agreement so the agreement should not be enforceable as as per the law if the contract is to be treated as completed for a period of time so it should be in the written form

Here woman could not able to sue the stonstock farms

Therefore the above statement represent an answer

....................................................

Answers

Answer:

....................................................:)))

A manager spent 5 hours of his day in meetings. If he said that he spent 70% of his day, how many total hours did he work?

Answers

Answer:

The total hours the manager worked

= 7.14 hours

Explanation:

a) Data and Calculations:

Time spent by a manager in meetings per day = 5 hours

Percentage of time spent in meetings = 70%

Total hours the manager worked per day = 5/70% = 7.14 hours

b) The total hours that the manager worked per day = 7.14 hours or 7 hours 9 minutes (approximately).  This is obtained by dividing the hours spent in meetings by the equivalent proportion that meetings consumed per day.

Fiat announces its intention to build an all-electric car plant in Belvidere, Illinois. Fiat also announces it intends to sell one million vehicles per year. It hires 3000 additional workers - enough to keep the plant operating at full capacity. Fiat also signs contracts with its unions committing to pay all of its workers at this plant for 2 full years whether or not the production at the plant reaches capacity. Is this a strong strategic commitment by Fiat?

Answers

Answer:

Yes, this is Fiat's strong strategic commitment, as a company's strategy corresponds to the set of actions that a company plans to achieve its long-term goals and objectives.

When the company then announces to stakeholders its intention to build an electric car plant in Illinois, as well as its plans to sell one million vehicles a year, hire 3,000 additional workers, and sign workers' pay contracts for 2 full years, it is assuming to its target audience a commitment to comply with their declarations, which means that the new investments and launching of new products will impact the company as a whole, its profitability, market value and competitiveness, which can then be understood. as a strong strategic commitment by Fiat.

Brad operates a hardware store. He maintains the books using the cash method. At the end of the year, his accountant computes his accrual basis income that is used on his tax return. For 2018, Brad had cash receipts of $2,200,000, which included $750,000 collected on accounts receivable from 2017 sales. At the end of 2018, he had $910,000 in accounts receivable from customers, all from 2018 sales. Brad paid cash for all of the purchases. The total amount he paid for merchandise in 2018 was $1,100,000. At the end of 2017, he had merchandise on hand with a cost of $165,000. At the end of 2018, the cost of merchandise on hand was $140,000.

a. Brad's accrual basis gross receipts for 2018 are: __________
b. The cost of goods sold for 2018 under the accrual method is: ____________
c. The gross profit from merchandise sales for 2018 under the accrual basis is:__________

Answers

Answer:

Brad Hardware Stores

a. Brad's accrual basis gross receipts for 2018 are: __________

= $1,450,000.

b. The cost of goods sold for 2018 under the accrual method is: ____________

= $1,125,000.

c. The gross profit from merchandise sales for 2018 under the accrual basis is:__________

= $1,235,000.

Explanation:

a) Data and Calculations:

Sales revenue for 2018:

Cash receipts =                       $2,200,000

Less 2017 accounts receivable $750,000

Add 2018 accounts receivable  $910,000

Sales revenue for 2018 =       $2,360,000

Gross receipts for 2018:

Cash receipts =                       $2,200,000

Less 2017 accounts receivable $750,000

Gross cash receipts =             $1,450,000

Purchases for 2018 = $1,100,000

Beginning inventory = $165,000

Ending inventory = $140,000

Cost of goods sold =  $1,125,000

Accrual Basis:

Sales revenue for 2018 = $2,360,000

Cost of goods sold =            1,125,000

Gross profit                       $1,235,000

Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158,710, and fixed selling and administrative expenses totaled $212,190. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:

Answers

Complete Question:

Krepps Corporation produces a single product. Last year, Krepps manufactured 32,150 units and sold 26,900 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $234, 695 $154, 320 $279, 705 $482, 250 Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158,710, and fixed selling and administrative expenses totaled $212.190. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:

Multiple Choice

O $28,350 higher than under absorption costing.

0 $28,350 lower than under absorption costing.

0 $78,750 lower than under absorption costing,

0 $78,750 higher than under absorption costing.

Answer:

Krepps Corporation

Under variable costing, the company's net operating income for the year would be:

0 $78,750 lower than under absorption costing

Explanation:

a) Data and Calculations:

Production units = 32,150 units

Sales units = 26,900 units

Production costs :

Direct materials                               $234, 695

Direct labor                                       $154, 320

Variable manufacturing overhead $279, 705

Fixed manufacturing overhead     $482, 250

Sales for the year                          $1,277,750

Variable selling and administrative expenses  $158,710

Fixed selling and administrative expenses      $212,190

Income Statement under variable costing:

Sales for the year                                               $1,277,750

Variable cost of goods sold                                $559,520

Variable selling and administrative expenses     $158,710

Total variable costs                                              $718,230

Contribution margin                                           $559,520

Fixed manufacturing overhead                         $482,250

Fixed selling and administrative expenses       $212,190

Total fixed costs                                                $694,440

Net operating loss                                             $134,920

Direct materials                               $234, 695

Direct labor                                       $154, 320

Variable manufacturing overhead $279, 705

Total variable manufacturing cost  $668,720

Production units =                            32,150

Unit costs = $20.60

Cost of goods sold = $559,520 ($20.80 * 26,900)

Income Statement under absorption costing:

Sales for the year                                               $1,277,750

Cost of goods sold                                              $963,020

Gross profit                                                           $314,730

Fixed selling and administrative expenses        $212,190

Variable selling and administrative expenses    $158,710

Total fixed costs                                                 $370,900

Net operating loss                                                $56,170

Direct materials                               $234, 695

Direct labor                                       $154, 320

Variable manufacturing overhead $279, 705

Fixed manufacturing overhead     $482, 250

Total manufacturing costs             $1,150,970

Production units = 32,150

Cost per unit = $35.80

Cost of goods sold = $963,020 ($35.80 * 26,900)

Difference = $78,750 ($134,920 - $56,170)

What is the loan amount if the interest rate is 7.5% per year and the monthly interest payment is $1,250?

Answers

Answer:

The amount of the loan was $ 13,953.48.

Explanation:

To determine what is the loan amount if the interest rate is 7.5% per year and the monthly interest payment is $ 1,250, the following calculation must be performed:

1250 x 12 = 15,000

1,075X = 15,000

X = 15,000 / 1,075

X = 13,953.48

Therefore, the amount of the loan was $ 13,953.48.

Suppose that the tax on interest income is levied on the nominal interest​ rate, the tax rate is 20 ​percent, and the real interest rate is 4 percent a year. There is no inflation.
Calculate the​ after-tax real interest rate and the true tax rate on interest income.

Answers

Answer:

After-tax interest rate ⇒ 3.2%True tax on interest income ⇒ 20%

Explanation:

After-tax real interest rate:

= Real interest rate * (1 - tax rate)

= 4% * (1 - 20%)

= 4% * 80%

= 3.2%

True tax on interest income:

= 20%

True tax on interest income is the tax rate levied on the nominal interest rate which is 20%.

Chance, Inc. sold 5,000 units of its product at a price of $172 per unit. Total variable cost per unit is $131, consisting of $92 in variable production cost and $39 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.

Answers

Answer:

$400,000

Explanation:

Computation for the manufacturing margin for the company under variable costing

Using this formula

Manufacturing margin= Sales - Total variable production cost

Let plug in the formula

Manufacturing margin=( 5,000*$172)- (5,000*$92)

Manufacturing margin=$860,000-$460,000

Manufacturing margin= $400,000

Therefore the manufacturing margin for the company under variable costing is $400,000

Green Corporation reported pretax book income of $1,040,000. During the current year, the net reserve for warranties increased by $52,000. In addition, tax depreciation exceeded book depreciation by $110,000. Finally, Green subtracted a dividends received deduction of $26,000 in computing its current-year taxable income. Green's cash tax rate is

Answers

Answer:

19.30%

Explanation:

Calculation to determine what Green's cash tax rate is

First step is to calculate the Taxes payable using this formula

Taxes payable = (Pretax book income + provision for warranties - depreciation in excess of books - dividends received deduction) x 21%

Let plug in the formula

Taxes payable= ($1,040,000 + $52,000 - $110,000 - $26,000) x 21%

Taxes payable=$956,000×21%

Taxes payable= $200,760

Now let determine the Cash tax rate using this formula

Cash tax rate = Taxes payable / Pretax book income

Let Plug in the formula

Cash tax rate = $200,760 / $1,040,000

Cash tax rate = .1930

Cash tax rate=19.30%

Therefore Green's cash tax rate is 19.30%

On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $470,000 and accumulated depreciation of $94,000. During 2018, the company plans to purchase additional equipment costing $100,000 and expects depreciation expense of $40,000. Additionally, it plans to dispose of equipment that originally cost $52,000 and had accumulated depreciation of $7,600. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2018 budgeted balance sheet are:

Answers

Answer:

The cost balance on 31 December 2018 is $518,000 while that of accumulated depreciation is $126,400

Explanation:

The balance of fixed assets is computed as

Opening balance - accumulated depreciation - depreciation + Addition - Disposal

Hence given that on December 31, 2017, Calgary Industries reports equipment of $470,000 and accumulated depreciation of $94,000. During 2018, the company plans to purchase additional equipment costing $100,000 and expects depreciation expense of $40,000, Additionally, it plans to dispose of equipment that originally cost $52,000 and had accumulated depreciation of $7,600 the balance then

= $470,000 + $100,000 - $52,000

= $518,000

The accumulated depreciation

= $94,000 + $40,000 - $7,600

= $126,400

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred $84,000 Actual direct labor-hours worked 27,000 The overapplied or underapplied manufacturing overhead for the year was:

Answers

Answer:

$12,000 Overhead Underapplied

Explanation:

Calculation to determine what The overapplied or underapplied manufacturing overhead for the year was:

Total pre-determined manufacturing overhead $72,000

($3*24,000)

Less Actual manufacturing overhead cost incurred ($84,000)

Overhead Underapplied $12,000

Therefore The overapplied or underapplied manufacturing overhead for the year was:$12,000 Overhead Underapplied

Botosan Factory has budgeted factory overhead for the year at $468,602, and budgeted direct labor hours for the year are 280,600. If the actual direct labor hours for the month of May are 255,300, the overhead allocated for May is

Answers

Answer:

$426,351

Explanation:

Calculation to determine what the overhead allocated for May is

Using this formula

Overhead allocated for May=(Estimated overhead/Estimated total DLHs)*Overhead rate per DLHs

Let plug in the formula

Overhead allocated for May=($468,602/ 280,600)*255,300

Overhead allocated for May=$1.67*255,300

Overhead allocated for May=$426,351

Therefore the overhead allocated for May is $426,351

The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be idle and fixed production costs would be reduced by one-fourth. If the parts are purchased from the outside supplier, the annual impact on the company's operating income will be:________
a) $24,000 increase
b) $24,000 decrease
c) $56,000 increase
d) $56,000 decrease

Answers

Answer:

d) $56,000 decrease

Explanation:

In the case when parts are produced by sharp corporation

Given that

Total cost per unit = $36

Total cost = Total cost per unit × parts

= $36 × 8,000

= $288,000

Now

If the parts are Purchased by the outside supplier, fixed costs decreased by one-fourth.

So, three-fourth fixed costs should be incurred.

Now  

Total cost per unit = Purchase Price + three - fourth fixed costs

= $28 + (3 ÷4) × $20

= $28 + $15

= $43

Now

Total cost = $43 × 8,000

= $344,000

So, the operating income is

= $288,000 - $344,000

= $56,000 decrease

The process of acquiring political beliefs is called political socialization.
true or false

Answers

True

Political socialization is the "process by which individuals learn and frequently internalize a political lens framing their perceptions of how power is arranged and how the world around them is (and should be) organized; those perceptions, in turn, shape and define individuals' definitions of who they are and how they should behave in the political and economic institutions in which they live

A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adjusting entry for this company by completing the following sentence. The required adjusting entry would be to debit the Interest __________________ account and ___________________ the Interest ___________________ account.

Answers

Answer:

The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account.

Explanation:

The number of days that a loan debt stays unpaid is referred to as the outstanding number of days.

In line with the general accounting rules, all expenses must be debited. Therefore, the interest expense has to be debited.

Interest payable, however, is the amount owed to a lender by a firm and is thus credited as the matching journal entry to the interest expense.

Therefore, we have:

The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account.

A physical count of merchandise inventory on July 30 reveals that there are 180 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is

Answers

Answer: $3,708

Explanation:

Using FIFO means that the earlier goods are sold before the later ones so the closing inventory would have the latest goods purchased.

If there are 180 units on hand, the cost would be:

54 units purchased at $22(180 - 54) units purchased at $20

Closing inventory is:

= (54 * 22) + ( (180 - 54) * 20)

= (54 * 22) + ( 126 * 20)

= $3,708

The following transactions took place in Boeing Business.
01.03.2021 - Purchase of goods costing Rs. 150000 from Airbus
company on credit.
05.03.2021 - Return of goods costing Rs. 30000 to Airbus
20.03.2021 - Sale of goods costing Rs. 100000 for Rs. 160000 on
credit
29.03.2021 - Payment of sales commission of Rs. 10000
02.04.2021 – Settlement of the full amount due to Airbus
What is the accounting equation which shows the net impact of the
above transactions in Boeing business as at 31.03.2021?
Assets
Liabilities
+
Equity

Answers

Answer:

1) Dr: Goods/Inventory (Asset increase) 150000

Cr: Payable (Liability increase) 150000

2) Dr: Payable (Liability decrease) 30000

Cr: Goods (Asset decrease) 30000

3) Dr: Payable (Liability decrease) 30000

Cr: Goods (Asset decrease) 30000

4) Dr: Receivables (Asset increase) 160000

Cr: Goods (Asset Decrease) 100000

Cr: Profit and loss (Equity increase) 60000

5) Dr: Commission Expense (Equity decrease) 10000

Cr: Cash (Asset Decrease) 10000

6) Dr: Payable (Liability decrease) 120000

Cr: Cash (Asset Decrease) 120000

trình bày các vai trò của đạo đức kinh doanh trong phát triển doanh nghiệp

Answers

Answer:

Explanation:

Trung thực: Tính trung thực trong đạo đức kinh doanh thể hiện ở chỗ không buôn bán, sản xuất những mặt hàng nhà nước cấm, không dùng các chiêu trò dối trá để đạt được lợi ích của mình, không trốn thuế, làm ăn phi pháp; không tham ô, hối lộ; trung thành chấp hành đúng quy định của pháp luật…

Tôn trọng con người: Tôn trọng con người bao gồm tôn trọng nhân viên, đối tác khách hàng, đối thủ cũng như tất cả những người làm việc cùng với mình

Đạo đức kinh doanh gắn liền lợi ích của công ty doanh nghiệp với lợi ích chung của khách hàng và trách nhiệm đối với xã hội

Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $286,800 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $266,000 and 11,100 total direct labor-hours during the period.

Required:
Determine the amount of manufacturing overhead that would have been applied to units of product during the period.

Answers

Answer:

Allocated MOH= $262,900

Explanation:

Giving the following information:

Plantwide predetermined overhead rate= $23.90 per direct labor hour.

The company incurred actual 11,100 total direct labor hours during the period.

To allocate overhead costs, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 11,000*23.9

Allocated MOH= $262,900

Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $17, direct labor $6, variable manufacturing overhead $3, fixed manufacturing overhead $19, variable selling and administrative expenses $1, and fixed selling and administrative expenses $13. Using a 30% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)

Answers

Answer:

the target selling price is $76.70

Explanation:

The computation of the target selling price is shown below:

= Total cost + 1 × markup percentage

= ($17 + $6 + $3 + $19 + $1  + $13)  × (1.30)

= $76.70

hence, the target selling price is $76.70

We simply applied the above formula so that the target selling price could be determined

Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $27,000 to $54,000 per year. The new machine will cost $82,500, and it will have an estimated life of 8 years and no salvage value. The new machine will be depreciated over its 5-year MACRS recovery period; so the applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. The applicable corporate tax rate is 40%, and the firm's WACC is 12%. The old machine has been fully depreciated and has no salvage value.

Required:
Should the old riveting machine be replaced by the new one?

Answers

Solution :

Calculating the (NPV) Net Present value for the following matters to check the feasibility of the replacement of an 8 year old riveting machine with the new one :

Let

A = Year (n)

B = Initial outlay

C = Five-year MACRS depreciation percentage

D = Depreciation with MACRS Method (D)

E = Savings in earnings before depreciation

F = Taxable Income (earnings before depreciation - depreciation

G = Income taxes (Taxable Income *40%)

H = [tex]\text{After-Tax Net}[/tex] cash flow [tex]\text{(Taxable income - taxes + depreciation)}[/tex]

I = PV of [tex]\text{Net cash flow}[/tex] at the rate [tex]12\%[/tex]= [tex]NCF[/tex]/ [tex](1+WACC\%)^n[/tex]

A          B          C          D             E            F             G             H              I

0      82,500                                                                        -82,500    -82,500

1                       20%   16500     27000   10500    4200     22800      20357.14

2                      32%   26400    27000    600         240      26760      21332.91

3                       19%   15675      27000  11325      4530      22470      15993.70

4                       12%   9900       27000  17100     6840      20160       12812.04

5                       11%    9075       27000  17925     7170      19830        11252.07

6                        6%   4950       27000   22050   8820     18180        9210.55

7                        0%    0             27000   27000   10800   16200       7328.06

8                        0%    0             27000   27000   10800   16200      6542.91

NPV                                                                                                    $22,329.39

As the NPV, the project is positive ($22,329.39) and so the company should replace the 8 year old riveting machine with the new one.

The members of a wedding party have approached Imperial Jewelers about buying 14 of these gold bracelets for the discounted price of $363.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $8. Imperial Jewelers would also have to buy a special tool for $461 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $12.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding partyâs order using its existing manufacturing capacity.

Required:
a. What is the financial advantage (disadvantage) of accepting the special order from the wedding party?
b. Should the company accept the special order?

Answers

answers:

the financial advantage = 4,341 dollars

given that  there is an advantage, then the project has to be accepted.

Explanation:

total incremental revenue from the 14 bracelets = 14 x 363 = $5082

direct material = 8 x 14 = 112

overhead = 12 x 14 = 168

we have the additional expense for this tool to be 461 dollars

for the special filigree that is to be attached to this bracelet e have

112 + 168 + 461 = $741

a. the financial advantage of accepting this = 5082 - 741 = 4341 dollars

b. given that there is a financial advantage then it is better that this order is accepted.

If money is your political voice, how loud is your voice? Who has the loudest voice?

Answers

Answer:

i....I honestly don't know I've tried online but it shows nothing sorry

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