Answer:
hyperinflation
Explanation:
Hyperinflation is a term in economics that denotes an out-of-control, rise in prices of goods and services . When the inflation rate is rapidly rising, say by more than 50% per month, then it is a case of hyperinflation.
Hence, hyperinflation is an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of use.
BensonBenson & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients. charges customers at a billing rate equal to % of the client's total job cost. A client's total job cost is a combination of (1) professional time spent on the client ( per hour cost of employing each professional) and (2) operating overhead allocated to the client's job. allocates operating overhead to jobs based on professional hours spent on the job. estimates its five professionals will incur a total of 10,000 professional hours working on client jobs during the year.
AllissaAllissa LarsonLarson hired BensonBenson to design her kitchen remodeling. A total of 35 professional hours were incurred on this job. In addition, LarsonLarson's remodeling job required one of the professionals to travel back and forth to her house for a total of 155 miles. The blueprints had to be copied four times because LarsonLarson changed the plans several times. In addition, 14 hours of secretarial time were used lining up the subcontractors for the job.
All operating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, office lease, and soforth) can be assigned to the three activities. Total activity costs, cost drivers, and total usage of those cost drivers are estimated as follows:
Activity Total Activity Cost Cost Driver Usage Total Usage by Corporate Clients Total usage by Private Clients
Transporation to clients. . . . . . $9,000 Round-trip mileage to clients. . . . . 1,500 miles 13,500 miles
Blueprint copying. . . . . . . . . . . 35,000 Number of copies. . . . . . . . . . . . 250 copies 750 copies
Office support. . . . . . . . . . . . . . 190,000 Secretarial time. . . . . . . . . . . . . . . 2,600 secretarial 2,400 secretarial
hours hours
Total operating overhead. . . . $234,000
Required:
a. Calculate the current indirect cost allocation rate per professional hour.
b. Calculate the total amount that would be billed to LarsonLarson given the current costing structure.
c. Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs.
d. Calculate the amount that would be billed to LarsonLarson using ABC costing.
e. Which type of billing system is more fair to clients? Explain.
Answer:
Benson & Company
a. Current indirect cost allocation rate per professional hour = Total overhead divided by 10,000 professional hours
$234,000/10,000
= $23.40
b. Total amount that would be billed to Larson with the current costing structure:
= $23.40 * 35
= $819.00
c. Overhead Rates based on ABC:
Transport to clients = $0.60 ($9,000/15,000)
Blueprint copying = $35.00 ($35,000/1,000)
Office support = $38.00 ($190,000/5,000)
d. Larson's Job based on ABC:
Transport to clients = $93 ($0.60 * 155)
Blueprint copying = 140 ($35.00 * 4)
Office support = 532 ($38.00 * 14)
Total $765
e. With Benson Company using ABC billing system to charge Larson, the system is fairer to clients generally, because it takes into consideration the volume of each activity consumed per client. Customers are charged based on actual activities consumed, and not based on some arbitrary figures. It is more reflective of the cost structure of the business and offers the best quality service to customers because price is determined by volume of activities.
Explanation:
a) Data and Calculations:
Professional hours spent on Larson job = 35 hours
Travel = 155 miles
Blueprints copies = 4
Secretarial time = 14 hours
Other operating costs:
Activity Total Activity Cost Driver Total Usage by Total Usage by
Cost Usage Corporate Clients Private Clients
Transportation Round-trip mileage
to clients $9,000 to clients 1,500 miles 13,500 miles
Blueprint
copying 35,000 Number of copies 250 copies 750 copies
Office support 190,000 Secretarial time 2,600 secretarial 2,400 secretarial hours hours
Total operating overhead $234,000
Estimated professional hours = 10,000
Overhead Rate = $23.40
Larson's Job:
Overhead cost = $23.40 * 35 = $819.00
Overhead Rates based on ABC: Larson's Job
Transport to clients = $0.60 $93 ($0.60 * 155)
Blueprint copying = $35.00 140 ($35.00 * 4)
Office support = $38.00 532 ($38.00 * 14)
Total $765
The adjusted trial balance of Gary Cooper Co. as of December 31, 2014, contains the following.
GARY COOPER CO.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $20,892
Accounts Receivable 8,340
Prepaid Rent 3,700
Equipment 19,470
Accumulated Depreciation-
Equipment $6,315
Notes Payable 7,120
Accounts Payable 6,892
Common Stock 21,420
Retained Earnings 12,730
Dividends 4,420
Service Revenue 13,010
Salaries and Wages Expense 8,260
Rent Expense 2,154
Depreciation Expense 251
Interest Expense 189
Interest Payable 189
$67,676 $67,676
Instructions:
(a) Prepare an income statement.
(b) Prepare a statement of retained earnings.
(c) Prepare a classified balance sheet.
Answer: See attachment
Explanation:
An income statement is sometimes referred to as the profit and loss account. It should be noted that it shows the revenue and the expenses that are incurred by a particular company for a certain year.
With regards to the questions above, check the attachments for the solution.
Which example is not an advantage of b entrepreneurship’s
When all of a firm's inputs are doubled, input prices do not change, and this results in the firm's level of production more than doubling, a firm is operating:
Answer: (B) on the downward-sloping portion of its long-run average total cost curve.
Explanation:
The downward-sloping portion of a company's Long Run Average Total Cost(LRATC) curve is the part where increasing returns to scale is witnessed.
This is because the costs that are incurred by the company leads to higher proportional output thereby reducing the average cost and pulling the LRATC down.
In this scenario, the inputs doubled and the firm's level of production more than doubled which means that with outputs increasing more than costs, the Average cost is reducing and the slope is downward sloping.
1
TRUE FALSE Dermatology is the study of the skin, its structure, functions, diseases and
treatment
2. TRUE FALSE The skin is the 2nd largest organ of the body.
3. The functions of the skin include sensation, heat regulation, absorption, protection, excretion
and
4. The three main layers of the skin are the subcutaneous, epidermis and
The skin layer that has five layers of cells with differing characteristics is the
Sweat is produced by the gland known as the
6. The layer of skin that acts as a shock absorber to protect the bones is known as the
7. The American Academy of Dermatology recommends using a sunscreen with an SPF
of at least
Answer:
T
Explanation:
Because its true Heheheheheheehhehe sorryyyyyy
Bristo Corporation has sales of 1,750 units at $40 per unit. Variable expenses are 30% of the selling price. If total fixed expenses are $39,000, the degree of operating leverage is:
Answer:
1,750=$40=1,750×40=70-30÷100×39,000=58,3
Explanation:
is total cost of production can be fixed cost +variable cost
Answer:
degree of operating leverage= 4.9
Explanation:
To calculate the degree of operating leverage, we need to use the following formula:
degree of operating leverage= Total contribution margin / operating income
Total Contribution margin= 1,750*(40*0.7)= $49,000
Operating income= 49,000 - 39,000= $10,000
degree of operating leverage= 49,000/10,000
degree of operating leverage= 4.9
You are considering an investment in Justus Corporation’s stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D1 = $2.25) and has a beta of 0.9. The risk-free rate is 4.9%, and the market risk premium is 5%. Justus currently sells for $46.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is P3 ?)
Answer:
The price 3-years from now will be of $52,50
Explanation:
We solve for g using the Gordon model:
[tex]\frac{divends(1+g)}{Price} = return-growth[/tex]
As we don't know the rate of return we solve ofr that fist using CAPM:
CAPM (Capital Assets Price Model)
[tex]Ke= r_f + \beta (r_m-r_f)[/tex]
risk free 0.049
market rate 0.099
premium market = market rate - risk free 0.05
beta(non diversifiable risk) 0.9
[tex]Ke= 0.049 + 0.9 (0.05)[/tex]
Ke 0.09400
We plug that in the gordon equation and solve for g:
[tex]\frac{2.25}{Price} = return-growth[/tex]
2.25 = 0.094 x 46 - g x 46
(2.25 - 4.324) / 46 = -g
-0.0450869565217391 = -g
g = 0.045087
In the gordon model the price of the stock increases at the grow rate:
as P = D/(r-g)
P1 = D(1+g)/r-g)
P1 / P = D(1+g)/(r- g) / D/(r- g) = 1 + g
[tex]P_3 = P(1+g)^3 = 46(1+0.045087)^3 = 52.50675369[/tex]
Mindy Novak is writing a paper and he must determine which of Porter's three generic strategies Beulah’s Boutiques has implemented. Mindy finds out that Beulah’s Boutiques offers specialty products found only in boutiques around the world to affluent customers. What would Mindy determine Beulah’s Boutiques is using as its generic strategy?
Answer:
The answer to this question can be defined as follows:
Explanation:
Mindy Novak writes a report, also determines, whether Beulah's boutiques have adopted Porter's three generic techniques. Mindy discovers Beulah's Boutiques only offer affluent clients premium brands in shops throughout the world, and he determines Mindy, that standard strategy of the boutiques of Beulah, which canister be defined as follows:
High expense, to the broad market Low cost, a narrow market. Low-cost, wide market High cost, narrow market High cost, narrow marketDemarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,500 of itemized deductions, and they had $3,550 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice is 18 years of age, the Jacksons may only claim the child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.)
Comprehensive Problem 4-55 Parts-c through f
a. What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500?
b. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions?
c. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?
Answer:
a. Taxable income = $80,000
b. Taxable income = $77,600
c. Taxable income = $80,600
Explanation:
Taxable income refers to the amount of income that is used to determine the amount of tax that will be paid to the government by an individual or firm in given year. The taxable income is arrived at after all the relevant addition and allowable deductions have been made.
The requirements are therefore answered as follows:
a. What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500?
Note: See part a of the attached excel file see the effect on taxable income.
The itemized deductions total of $28,000 instead of $16,500 makes the taxable income to be $80,000.
In the attached excel file, the following calculations is used:
Qualified business income deduction = Qualified business income * Parentage of deduction allowed = $10,000 * 20% = $2,000
b. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions?
Note: See part b of the attached excel file for the calculations of the taxable income.
This makes the taxable income to be equal to $77,600.
c. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?
Note: See part c of the attached excel file for the calculations of the taxable income.
The loss of loss of $5,000 on the sale of some of their investment assets incurred by the Jacksons is capital loss.
For tax purposes, capital loss of can be deducted as a loss on tax return by tax payers with a maximum of $3,000 to be deducted per year.
Therefore, the Jacksons will deduct $3,000 as a capital loss from their tax return, and the effect of this is to reduce the taxable income by $3,000.
This makes the taxable income to be equal to $80,600.
how can you use information about a person's values to help you relate more effectively to him or her."
Answer: bec if you know the person’s values your are able to better communicate with them because you know their likes and dislikes you have had the chance and opportunity to get to know them and that can help you achieve your goal.
Explanation:
If you know the person’s values you are able to better communicate with them because you know their likes and dislikes you have had the chance and opportunity to get to know them and that can help you achieve your goal.
what is the quality definition of Verbal exchange?
1a: a system by way of which facts are exchanged between people thru a common device of symbols, signs, and symptoms, or behavior the function of pheromones in insect verbal exchange also: alternate of data. b: private rapport is a loss of communication between old and young people.
Why is verbal exchange crucial?Top verbal exchange abilities are vital to allow others and yourself to understand facts extra correctly and fast. In contrast, terrible conversation abilities cause frequent misunderstandings and frustration.
Learn more about Verbal Exchange at https://brainly.com/question/2421884
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Leonard, a company that manufactures explosionproof motors, is considering two alternatives for expanding its international export capacity. Option 1 requires equipment purchases of $900,000 now and $560,000 two years from now, with annual M&O costs of $79,000 in years 1 through 10. Option 2 involves subcontracting some of the production at costs of $280,000 per year beginning now through the end of year 10. Neither option will have a significant salvage value.
Required:
Use a present worth analysis to determine which option is more attractive at the company’s MARR of 20% per year. (Note: Check out the spreadsheet exercises for new options that Leonard has been offered recently.)
Answer:
Since the total present value of Option 2 of – $1,453,892 is lower than the total present value of Option 1 of – $1,620,094, it implies that Option 2 costs less and more attractive at the company’s MARR of 20% per year than Option 1. Therefore, Option 2 should be selected.
Explanation:
Note: See the attached excel file for the calculation of the total present values (in bold red color) of the two alternatives for expanding international export capacity.
Present worth can be described as an equivalence method of analysis in which the cash flows of an investment or a project are discounted to a single present value.
From the attached excel file, we have:
Total present value of Option 1 = – $1,620,094
Total present value of Option 2 = – $1,453,892
Since the total present value of Option 2 of – $1,453,892 is lower than the total present value of Option 1 of – $1,620,094, it implies that Option 2 costs less and more attractive at the company’s MARR of 20% per year than Option 1. Therefore, Option 2 should be selected.
We run a delivery service, and we believe our firm has market risk equally between that of UPS and FedEx. We know the following about these 2 firms:______.
Stock Price per share # shares outstanding Market Value of Debt
UPS $65 0.7 billion $ 5 billion
FedEx $55 250 million $ 3 billion
We also have the following data on the securities of these firms:_______.
Beta E Beta D
UPS 0.8 0
FedEx 1.1 0.1
Assume that our firm has risk-free debt with market value $20 million and equity with market value $450 million. Assume that taxes are not relevant. Please estimate our firm’s equity beta
Answer:
The answer is "0.85 "
Explanation:
In order to locate a beta of the company, we must find the average beta of unlevered UPS and FedEx and find a levered beta of the company.
Price Outstanding shares(Billion) Market valu of equity(Billion) Market value of debt(billions) D/E Ratio
UPS 65 0.7 45.5 5 0.1099
FedEx 55 0.25 13.75 3 0.2182
[tex]Unlevered \ beta= \frac{levered \ beta}{(1+((1- tax rate)\times(\frac{Debt}{Equity})))}[/tex]
taxes desn't matter , given in the question so, assumed to be 0
[tex]Unlevered \ beta \ for \ UPS= \frac{0.8}{1+(1-0)\times (0.1099)}[/tex]
[tex]= \frac{0.8}{1+(1)\times (0.1099)}\\\\= \frac{0.8}{1+(0.1099)}\\\\= \frac{0.8}{1.1099}\\\\=0.72[/tex]
[tex]Unlevered \ beta \ for \ FedEx= \frac{1.1}{1+(1-0)\times (0.2182)}[/tex]
[tex]= \frac{1.1}{1+(1)\times (0.2182)}\\\\= \frac{1.1}{1+(0.2182)}\\\\= \frac{1.1}{1.2182}\\\\=0.90[/tex]
[tex]Average \ Unlevered \ beta = \frac{0.72+0.90}{2}[/tex]
[tex]= \frac{1.62}{2}\\\\=0.81[/tex]
[tex]\text{levered beta of the delivery service firm }= unlevered \ beta \times(1+(1-taxes) \times (\frac{debt}{equity}))[/tex]
[tex]= 0.81 \times (1+(1-0)\times (\frac{20}{450})\\\\= 0.81 \times (1+(1)\times (0.04)\\\\= 0.81 \times (1+(0.04)\\\\= 0.81 \times (1.04)\\\\=0.85[/tex]
Company sells a nature guide. The following information was reported for a typical month: Total Per Unit Sales $ 17,600 $ 16.00 Variable expenses 9,680 Contribution margin 7,920 Fixed expenses 3,600 Net operating income $ 4,320 What is Bear's current break-even point in unit and dollars
Answer:
500 units and $8,000
Explanation:
The computation is shown below:
Break even point in units
= Fixed cost ÷ Contribution margin per unit
= ($3,600) ÷ ($7,920 ÷ ($17,600 ÷ $16)
= ($3,600) ÷ ($7.2)
= 500 units
Now the break even point in dollars is
= Fixed cost ÷ Contribution margin ratio
= ($3,600) ÷ ($7.2 ÷ $16)
= $3,600 ÷ 0.45
= $8,000
We simply applied the above formula and the same is to be considered
What are the key factor(s) for success in this industry/market
Answer:
Strategic Focus (Leadership, Management, Planning) People (Personnel, Staff, Learning, Development) Operations (Processes, Work) Marketing (Customer Relations, Sales, Responsiveness)
Explanation:
Whether you're operating an established small business or just starting out, an effective, ongoing marketing strategy is vital. But marketing without a plan will not only waste time and money; it may alienate your customers and stall the growth of your business.
To match your marketing strategies to the needs and expectations of your target customers and ensure that your business continues to grow, start by identifying your key success factors.
Key success factors (or KSF) are business strategies that are critical to a successful relationship with your customers.
Key success factors are decided by the needs and preferences of your market and customers, not by your business. However, consumers aren't going to tell you what those KSF are. Discovering your key success factors requires researching your customers to understand who they are, what they want from your company, and what prompts them to make a purchase.
A business generally has three to five key success factors that it needs to focus on to achieve its goals. Key success factors also may relate to areas of weakness that you must overcome to create a stronger relationship with your customers.
Once you understand and begin using your key success factors, they become part of your brand and business style.
Apart from the internet, which encourages customers to reach out to a business or brand, use of other advertising vehicles refers to________ marketing
Answer: Television
Explanation:
, thought it was direct marketing earlier, but it was not
A company has total equity of $2,160, net working capital of $240, long-term debt of $1,070, and current liabilities of $4,500. What is the company's net fixed assets?
Answer:
$2,990
Explanation:
A company's fixed asset consist of its plants and machineries, motor vehicles , buildings etc.
To get the company's net fixed asset, we would subtract the networking capital from total equity and add up long term debt.
Therefore,
Net fixed asset = $2,160 total equity - $240 working capital + $1,070 long term debt
= $2,990
Hence net fixed asset is $2,990
You are the manager of a monopoly that faces a demand curve described by P = 85 − 5Q. Your costs are C = 20 + 5Q. The profit-maximizing output for your firm is:
Given:
Price function : P = 85 − 5Q.
Cost function : C = 20 + 5Q.
To find:
The profit-maximizing output for your firm.
Explanation:
Total revenue = Price × Quantity
[tex]TR=P\times Q[/tex]
[tex]TR=(85-5Q)\times Q[/tex]
[tex]TR=85Q-5Q^2[/tex]
Differentiate with respect to quantity.
[tex]\dfrac{d(TR)}{dQ}=85(1)-5(2Q)[/tex]
[tex]MR=85-10Q[/tex]
Cost function is
[tex]C=20+5Q[/tex]
Differentiate with respect to quantity.
[tex]\dfrac{dC}{dQ}=(0)+5(1)[/tex]
[tex]MC=5[/tex]
The profit is maximum if [tex]MR=MC[/tex].
[tex]85-10Q=5[/tex]
[tex]85-5=10Q[/tex]
[tex]80=10Q[/tex]
Divide both sides by 10.
[tex]\dfrac{80}{10}=Q[/tex]
[tex]Q=8[/tex]
Therefore, the profit-maximizing output for the firm is 8 units.
The demand curve is the curve that shows the relationship of demand with its various aspects. The demand curve is the graphical presentation of the shifts that are caused by the aspects of the demand.
The given information are:
Price function : P = 85 − 5Q.
Cost function : C = 20 + 5Q.
Total revenue = Price × Quantity
[tex]TR=P\times Q[/tex]
[tex]TR=(85-5Q)\times Q[/tex]
[tex]TR= 85Q-5Q^{2}[/tex]
Differentiate with respect to quantity.
[tex]\frac{d(TR)}{dQ} =85(1)-5(2Q)\\MR=85-10Q[/tex]
Cost function is=[tex]C=20+5Q[/tex]
Differentiate with respect to quantity.
[tex]\frac{dC}{dQ}=(0)+5(1)\\MC=5[/tex]
The profit is maximum in the firm if: [tex]MR=MC[/tex]
[tex]85-10Q-5\\85-5=10Q\\80=10Q[/tex]
Divide both sides by 10.
[tex]\frac{80}{10}=Q\\Q=8[/tex]
Therefore, the profit-maximizing output for the firm is 8 units.
To know more about the calculation of the profit maximization, refer to the link below:
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An Investment Adviser Representative (IAR) manages the assets of the ABC Corporation Profit Sharing Plan. The trustee of the plan contacts the IAR, explaining to the IAR that he wants a check drawn from the plan account to buy a building that ABC Corporation will occupy. The IAR should:
Answer:
refuse to issue the check because it is a breach of the IAR's fiduciary obligation
Explanation:
This check should not be issued because if it is issued it would be a breach of the investment advisor representative fiduciary obligation. His main responsibility is to offer advices that relates to investment because he is a financial planner. He has to act in the best interest of his client with loyalty and also in good faith.
Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.
Answer:
C). It should derecognize these receivables.
Explanation:
Derecognition is characterized as the process of removing or derecognizing a financial asset or liability from the company's balance sheet that was previously acknowledged. In the given situation, the appropriate treatment for the Account receivables would be to dercognize it as the organization does not possess any control over them. Thus, option C is the correct answer.
Joni Splish Brothers Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $23,800
Trademarks 15,700
Discount on bonds payable 36,800
Deposits with advertising agency for ads to promote goodwill of company 11,800
Excess of cost over fair value of net identifiable assets of acquired subsidiary 76,800
Cost of equipment acquired for research and development projects; the equipment has an alternative future use 86,800
Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years 82,600
Required:
On the basis of this information, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at year-end.
Answer:
$92,500
Explanation:
The computation of the total intangible asset is shown below:
= Trademarks + Excess of cost over fair value of net identifiable assets of acquired subsidiary
= $15,700 + $76,800
= $92,500
Hence, the total intangible asset is $92,500 and the same is to be considered
We simply applied the above formula
Ballou Corporation declared a cash dividend on December 13, 2018, payable on January 10, 2019. By mistake, the company failed to make a journal entry in December 2018. The effect of this error on the financial statements as of December 31, 2018 were:_____.
a. retained earnings was overstated and liabilities were understated.
b. retained earnings was overstated and cash were understated.
c. retained earnings and liabilities were both understated.
d. retained earnings and liabilities were both overstated.
Answer:
a. retained earnings was overstated and liabilities were understated.
Explanation:
Since in the cash dividend is declared also the same is not recorded by the company
So this error would impact the two account i.e. retained earnings and the liabilities
In this, the retained earning is overstated and the liabilities were understated
Therefore the correct option is a.
And, the rest of the options are wrong
Managers should make marketing decisions in the light of their own knowledge and experience instead of viewing research reports as the final answer to their problems because:
a. the number of factors included in a marketing research study are not exhaustive.
b. decisions based on marketing research reports are highly risky.
c. there is no possibility that marketing research will be affected by researcher bias.
d. marketing research is not a systematic process for obtaining information.
Answer:
a. the number of factors included in a marketing research study are not exhaustive.
Explanation:
Marketing research is highly effective as a tool for guiding marketing decisions, but it is necessary for the manager to rely on making decisions not only through research, but also due to his conceptual skills of seeing the organization in a systematic way, where there is a much greater breadth and more complex factors than just the information found through marketing research. The set of the manager's vision, experiences, analyzes and indicators is important for the most adequate assessment so that organizational marketing decisions are effective and achieve the company's objective.
Therefore, it is correct to state that the number of factors included in a marketing research study is not exhaustive.
Allen Air Conditioning manufactures room air conditioners at plants in Houston, Phoenix, and Memphis. These are sent to regional distributors in Dallas, Atlanta, and Denver. The shipping costs vary, and the company would like to find the least-cost way to meet the demands at each of the distribution centers. Dallas needs to receive 800 air conditioners per month, Atlanta needs 600, and Denver needs 200. Houston has 850 air conditioners available each month, Phoenix has 650, and Memphis has 300. The shipping cost per unit from Houston to Dallas is $8, to Atlanta $12, and to Denver $10. The cost per unit from Phoenix to Dallas is $10, to Atlanta $14, and to Denver $9. The cost per unit from Memphis to Dallas is $11, to Atlanta $8, and to Denver $12.
Required:
a. How many units should owner Stephen Allen ship from each plant to each regional distribution center?
b. What is the total transportation cost?
Answer:
$14700
Explanation:
Given that:
i. Dallas needs 800 per month
ii. Atlanta needs 600 per month
iii. Denver needs 200 per month
iv. Houston has 850 available per month
v. Phoenix has 650 available per month
vi. Memphis has 300 available per month
Assuming that a plant can deliver air conditioners to more than one regional distributor in a month. Then;
a. For least-cost way to meet the demand, Stephen Allen could ship the air conditioners to each regional distributors as follows:
From Houston to Dallas = 800 units
From Houston to Atlanta = 50 units
From Phoenix to Atlanta = 250 units
From Memphis to Atlanta = 300 units
From Phoenix to Denver = 200 units
Total units transported = 1600 units
b. Cost per transportation:
Houston to Dallas = $8 x 800 = $6400
Houston to Atlanta = $12 x 50 = $600
Phoenix to Atlanta = $14 x 250 = $3500
Memphis to Atlanta = $8 x 300 = $2400
Phoenix to Denver = $9 x 200 = $1800
Total transportation cost = $6400 +$600 + $3500 + $2400 + $1800
= $14700
The total transportation cost would be $14700.
The technique recommended by the text to organize an analysis of external strategic factors is called
Marketing by the Numbers: Pricey Sheets
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more consumers pay almost $3,000 for Frett'e "Tangeri Pizzo king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market and are determining the price at which to sell their sheets directly to consumers online. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long staple organic cotton from India. Given the cost information below, refer to Appendix 2: Marketing by the Numbers to answer the following questions.
Cost/King-size Set
Raw Cotton $28.00
Spinning/Weaving/Dyeing $12,00
Cut/Sew/Finishing $10,00
Material Transportation $3,00
Factory Fee $16,00
Inspection and Import Fees $14,00
Ocean Freight/Insurance $5,00
Warehousing $8,00
Packaging $15,00
Promotion $30,00
Customer Shipping $15,00
10-13 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales.
10-14 If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.
Answer:
10-13 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales.
variable cost per unit = 28 + 12 + 10 + 3 + 16 + 14 + 5 + 8 + 15 + 30 + 15 = $156
average fixed cost per unit = $500,000 / 50,000 units = $10
total cost per unit = $166
desired profit margin = 40%, so total costs must be 60% of selling price
selling price = $166 / 60% = $276.67 ≈ $277 per unit
10-14 If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.
retailers' margin = $277 x 20% = $55.40
selling price to retailers = $277 - $55.40 = $221.60
wholesalers' margin = $221.60 x 10% = $22.16
selling price to wholesalers = $221.60 - $22.16 = $199.44 per unit
Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $3,760,000 in yearly sales. The expansion will increase fixed costs by $1,800,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $_____
Total fixed costs $_____
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____
Unit contribution margin $_____
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
8. Based on the data given, would you recommend accepting the proposal?
a. In favor of the proposal because of the reduction in break-even point.
b. In favor of the proposal because of the possibility of increasing income from operations.
c. In favor of the proposal because of the increase in break-even point.
d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.
Answer:
Darby Company
1. Determination of the total variable costs and the total fixed costs for the current year.
Total variable costs $_____22,000,000
Total fixed costs $_____10,000,000
2. Determination of (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____44 ($22,000,000/500,000)
Unit contribution margin $_____50 ($94 - $44)
3. Compute the break-even sales (units) for the current year:
Break-even sales (units) = Fixed Costs/Contribution per unit
= $10,000,000/$50 = 200,000 units
4. Compute the break-even sales (units) under the proposed program for the following year.
Break-even sales (units) = Fixed costs/Contribution per unit
= $11,800,000/$50 = 236,000
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year
Break-even sales (units) to achieve income target = (Fixed costs + Income target)/Contribution per unit
= ($11,800,000 + 15,000,000)/$50
= 536,000
6. Determine the maximum income from operations possible with the expanded plant.
Income Statement for the current year
Next Year's Financials:
Total
Sales $50,760,000 ($94 * 540,000)
Expenses:
Total variable 23,760,000 ($44 * 540,000)
Fixed costs 11,800,000 ($10,000,000 + $1,800,000)
Income from operations $15,200,000
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
Total
Sales $47,000,000 ($94 * 500,000)
Expenses:
Total variable 22,000,000 ($44 * 500,000)
Fixed costs 11,800,000 ($10,000,000 + $1,800,000)
Income from operations $13,200,000
8. Based on the data given, would you recommend accepting the proposal?
Unless the proposal results to an increase in the units sold, it is not acceptable as can be seen from (7) above. However, it is very acceptable if sales unit will increase by 40,000 units as illustrated in (6) above.
b. In favor of the proposal because of the possibility of increasing income from operations.
Explanation:
a) Data and Calculations:
Income Statement for the current year
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
Sales volume = 500,000 units
Selling price = $94
Division of costs between variable and fixed is as follows:
Variable Fixed Variable Fixed Total
Sales $47,000,000
Cost of goods sold 70% 30% $17,500,00 7,500,000 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses 75% 25% 3,000,000 1,000,000 4,000,000
Administrative exp. 50% 50% 1,500,000 1,500,000 3,000,000
Total expenses 4,500,000 2,500,000 7,000,000
Total variable and fixed costs 22,000,000 10,000,000 32,000,000
Income from operations $15,000,000
Next Year's Financials:
Variable Fixed Variable Fixed Total
Sales $50,760,000
Cost of goods sold 70% 30% $17,500,00 7,500,000 25,000,000
Gross profit $22,000,000
Expenses:
Total variable and fixed costs 22,000,000 11,800,000
Income from operations $15,000,000
This activity is important because any business that offers multiple product lines to multiple market segments is faced with the task of making the product/market decisions and prioritizing those decisions. Products and market segments that are growing quickly and are very profitable should get more attention and resources than a product and market segment that does not show as much potential.
Once a marketing manager creates a market-product grid, they must select which segments to target. To do this, the marketing manager should use several criteria in assessing the different segments. Those criteria include: market size, expected growth, competitive position, cost of reaching the segment, and the compatibility with the organization's objectives and resources.
The goal of this exercise is to demonstrate your understanding of the market-product development process by analyzing a gift shop's markets and products.
Read the case below and then answer the questions that follow as you consider its markets and product offerings.
A small local gift shop recently marked its 25th anniversary of being in business. Over that time, the owners have continually changed the products sold in its store to reflect changes in the market. From the early days of selling small gift-type items such as figurines and collectibles, the store now offers a more eclectic mix of merchandise that includes Vera Bradley purses and inexpensive jewelry, as well as items that could be classified as "gift-type" products and merchandise that is best described as "collectibles."
However, the demographics of the store's market, as well as the needs of that market, seem to be changing. There has been an influx of younger customers (20s and 30s) into the area, which has brought the average age of the area down by 9.8 years. This rapidly growing segment doesn't seem interested in buying the same collectibles that their parents bought. Many older residents (60s and 70s) have been leaving the area for retirement. The older customers are still buying the collectibles, but are also buying gifts for children and grandchildren for holidays and special occasions. Indeed, while sales of merchandise aimed at the younger customers have grown 30 percent, sales to the older crowd have been flat. And the younger group has now passed the older segment in terms of the size of the population. While there are other stores in the area selling similar merchandise, this gift shop has managed to get an exclusive on the Vera Bradley line, which has been popular with the younger customers. The owners of the gift shop are considering which market segment should be the focus of their attention and limited resources. This is an especially critical decision because of the limited space in the store and the need to add fixtures for carrying some of the collectible items that are coming on the market.
Based on the limited information in the case, which market segment is larger?
a) the over-80 segment
b) all segments are the same size
c) the 60s and 70s segment
d) the 20s and 30s segment
31. Which one is not the barriers of Enterpreneurship:
(A) Lack of technical skills
(B) Political instability
(C) Technical knowledge
(D) Time pressure and distractions
Answer:
d
Explanation:
I think so, I'm not sure
. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.
Question attached
Answer and Explanation:
Please find attached
Acute Company manufactures a single product. On December 31, 2014, it adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was determined to be $300,000. Inventory data for succeeding years follow:
Year Ended December 31 Inventory at Respective Year-End Prices Relevant Price Index (Base Year 2014)
2015 $363,000 1.10
2016 420,000 1.20
2017 430,000 1.25
Required:
Compute the inventory amounts at December 31, 2015, 2016, and 2017, using the dollar-value LIFO inventory method for each year.
Answer:
Acute Company
Year Ended December 31 Inventory at
Respective Year-End Prices Relevant Price Index Dollar-value LIFO
2015 $363,000 1.10 $330,000
2016 420,000 1.20 350,000
2017 430,000 1.25 344,000
Explanation:
a) Data and Calculations:
Year Ended December 31 Inventory at Respective Year-End Prices Relevant Price Index (Base Year 2014)
Year Year-End Prices Price Index
2015 $363,000 1.10
2016 420,000 1.20
2017 430,000 1.25
Dollar-value LIFO:
2015 = $363,000/1.10 = $330,000
2016 = $420,000/1.20 = $350,000
2017 = $430,000/1.25 = $344,000
b) The implication is that the respective year-end prices are re-calculated using the 2014 base year index. This prunes the effect of inflation on the most recent prices when compared to the base year of 2014. It makes the ending inventories for the years to be comparable since the inflation-influenced cause has been removed.