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r-ruslan [8.4K]
2 years ago
4

According to Mintzberg, managers averaged 36 written and 16 verbal contacts per day with most of these activities lasting less t

han nine minutes.
A. True
B. False
Business
1 answer:
Alik [6]2 years ago
5 0

The given statement " According to Mintzberg, managers averaged 36 written and 16 verbal contacts per day with most of these activities lasting less than nine minutes " is TRUE.

Explanation:

Mintzberg observed CEOs of the job to get some idea of what they do and how they spent their time.

He found, For instance, that they averaged 36 written and 16 verbal contacts per day, almost everyone of them dealing with a distinct or difference issue. Most of these activities were brief, lasting less than nine minutes.

Mintzberg seminal study of managers and their jobs  three core management roles:

  • Interpersonal Roles
  • Informational Roles
  • Decisional Roles
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A vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual pr
Elanso [62]

Answer:

Make or Buy Decisions:

a) Make (50,000 units)

Direct materials           $75,000

Direct labor                  100,000

Variable overhead      375,000

Total variable costs  $550,000

Contribution          $6,950,000

Sales                      $7,500,000

Fixed overhead          150,000

Net profit              $7,350,000

b) Buy (50,000):

Purchase price    $3,000,000

Contribution        $4,500,000

Fixed costs                 112,500

Net profit             $4,387,500

c) The company should make the engines.

Explanation:

a) Variable overhead = $375,000 ($7.50 x 50,000)

b) Fixed overhead = $150,000 ($100,000 x 1.5)

c) Sales = $7,500,000 ($150 x 50,000)

d) Purchase = $3,000,000 ($60 x 50,000)

e) Unavoidable Fixed overhead = $112,500 ($150,000 x 75%)

f) The problem is called a make or buy decision because, management of this company is faced with two options.  In order to arrive at the better option in terms of long-term financial implication, the costs and profitability of the decision must be taken into consideration.  Relevant costs are considered.  A look at the two options, clearly shows that it makes better financial sense for the company to make than to buy the engines outside.  Therefore, management is advised to make as the company will make much more sustainable profit by so doing.

4 0
2 years ago
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15,
beks73 [17]

Answer:

maximum profit ($30 in total) is obtained by selling 5 units

Explanation:

  1. if the market maker buys and sells one unit, his/her profit = $15 - $5 = $10
  2. if the market maker buys and sells two units, his/her profit = $10 + ($14 - $6) = $18
  3. if the market maker buys and sells three units, his/her profit = $18 + ($13 - $7) = $24
  4. if the market maker buys and sells four units, his/her profit = $24 + ($12 - $8) = $28
  5. if the market maker buys and sells five unit, his/her profit = $28 + ($11 - $9) = $30

the maximum profit per unit is obtained by selling only 1 unit, but the total maximum profit is obtained by selling 5 units.

3 0
2 years ago
The Thomas Cook travel agency has experienced financial setbacks due to the Iraq war, the SARS epidemic, and unusually hot weath
Tomtit [17]

Answer:

Threats in its external environment.

Explanation:

Situational analysis can be described as the thorough examination of the internal and external constituents of an organization.

Situational analysis is employed by different organizations to help identify their strengths and weaknesses. It helps to examine the capabilities of employees within an organization.

Situational analysis helps to identify the current strategies and activities that have been put in place inorder to solve problem. It also helps to get a clear insight into the different opinions and experiences of stakeholders.

4 0
2 years ago
The before-tax income for Lonnie Holdiman Co. for 2020 was $101,000 and $77,400 for 2021. However, the accountant noted that the
lozanna [386]

Answer:

Lonnie Holdiman Co.

A Schedule showing the determination of the corrected income before taxes for 2020 and 2021:

                                                                             2020         2021

Before-tax income                                           $101,000    $77,400

1. Excess Sales revenue                                    (38,200)    38,200

2. December 31, 2020 Inventory understated   8,640      (8,640)

3. Amortized bonds discount not expensed      (1,776)       (1,901)

4. Equipment repairs not expensed                  (8,500)     (9,400)

5. Overstated depreciation from capitalized

   Equipment repairs                                             850           940

Corrected income before taxes                    $62,014   $96,599

Explanation:

a) Data and Calculations:

Before-tax income for 2020 = $101,000

Before-tax income for 2021 = $77,400

1. 2020 Sales Revenue $38,200; 2021 Sales Revenue $38,200

2. 2020 Understated inventory $8,640; 2021 Understated inventory $8,640

3. 2020 Unstated bonds interest expense $1,776

2021 Unstated bonds interest expense $1,901

4. 2020 Unstated equipment repairs $8,500 Overstated Equipment account $8,500

2021 Unstated equipment repairs $9,400 Overstated Equipment account $9,400

2020 Overstated Depreciation expense $850

2021 Overstated Depreciation expense $940.

Bonds Calculations:

Bonds outstanding value:

Bond's face value =        $250,000

Discount =                            15,000

Proceeds from bonds = $235,000

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,450 ($235,000 * 7%)

Amortized discount = $1,450

December 31, 2017:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,450 ($235,000 * 7%)

Amortized discount =          $1,450 ($16,450 - $15,000)

Outstanding value = $236,450 ($235,000 + 1,450)

December 31, 2018:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,552 ($236,450 * 7%)

Amortized discount =          $1,552 ($16,552 - $15,000)

Outstanding value = $238,002 ($236,450 + 1,552)

December 31, 2019:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,660 ($238,002 * 7%)

Amortized discount =          $1,660 ($16,660 - $15,000)

Outstanding value = $239,662 ($238,002 + 1,660)

December 31, 2020:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,776 ($239,662 * 7%)

Amortized discount =          $1,776 ($16,776 - $15,000)

Outstanding value = $241,438 ($239,662 + 1,776)

December 31, 2021:

Bonds coupon payment = $15,000 ($250,000 * 6%)

Bonds Interest expense = $16,901 ($241,438 * 7%)

Amortized discount =           $1,901 ($16,901 - $15,000)

Outstanding value = $243,339 ($241,438 + 1,901)

Depreciation on Capitalized Equipment Repairs:  

Excess depreciation expense:

2020 = $850 ($8,500 * 10%)

2021 = $940 ($9,400 * 10%)          

6 0
2 years ago
Tressor company is considering a 5-year project. the company plans to invest $90,000 now and it forecasts cash flows for each ye
Ad libitum [116K]

Interest rate Present value of an annuity

of $1 factor for year 5

10% 3.7908

12% 3.6048

14% 3.4331

Calculate the internal rate of return to determine whether it should accept this project.

The project should be accepted because it will earn more than 14%.

The project should be accepted because it will earn more than 10%.

The project will earn more than 12% but less than 14%. At a hurdle rate of 14%, the project should be rejected.

The project should be rejected because it will earn less than 14%.

The project should be rejected because it will not earn exactly 14%.

Answer : The IRR of the project is 15.24%.

The project should be accepted since it will earn more than 14%.

The NPV at 10% is $ 12351.6

The NPV at 12% is $7329.6

The NPV at 14% is 2693.7

Since NPV is positive at 14%, we may safely conclude that the IRR of the project is greater than 14%.

The NPV at 15% is 90,508.19

The NPV at 16% is 88,405.93

By interpolation, we can determine that the IRR of the project is 15.24%.

8 0
2 years ago
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