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vampirchik [111]

1 year ago

5

Cakery Bakery received $1,000 from a customer on August 5, 2016 for a wedding cake to be delivered on September 19, 2016. What w

ould Cakery Bakery record on their books when the cake is successfully delivered?

1 answer:

musickatia [10]1 year ago

4 0

September 19, 2020 because that is when the cake successfully delivered

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OptiLux is considering investing in an automated manufacturing system. The system requires an initial investment of $4 million,

Deffense [45]

Answer:

<u>Requirement 1:</u> $257,000 Positive

<u>Requirement 2:</u> IRR is higher than 10%

Explanation:

<u>Requirement 1:</u>

We can use the following formula, to calculate the net present value of the project:

Net Present Value = Annual Cash Inflows * Annuity Factor - Investment

Here

Annual Cash Inflow is $500,000

r is 10%

n is the life of the project which is 20 years

Annuity factor = (1- (1+r)^-n) / r = (1 - (1 + 10%)^-20) / 10% = 8.514

Investment is $4,000,000

By putting values in the above equation, we have:

Net Present Value = $500,000 * 8.514 - $4,000,000

NPV = $257,000 Positive

<u>Requirement 2:</u>

Internal rate of return gives the required rate at which NPV is zero.

Since NPV is positive at 10%, IRR will be higher than 10%.

Always remember that, increase in the discount rate decreases the NPV and vice versa.

5 0

2 years ago

1. Advertising is important for most companies, es- pecially companies such as P&G that sells mostly to end customers. But,

omeli [17]

Answer:

1. Companies like P&G have their customer base consisting on end customers whose choice of toothpaste and towels which can change depending on multiple influencers like cost, other attractive features in competitors, freebies etc. Thus a strong customer focus and reach is essential to even retain the current customer base. Thus these companies need to focus on advertising to remain competitive in the current market atmosphere.

2. The numbers of advertising companies can be appropriately engaged based on cost and effectiveness as long as there are sufficient companies customizing the advertising and marketing efforts for the region in focus. If there are too many agencies running the advertising, the cost could be very high. If the number of agencies are decreased to too low and same advertising efforts are used in different type of demographic regions, the impact and effectiveness of the advertising could be less and not as effective as required. Thus choosing the sufficient number of agencies to reach all the required demographic regions is essential to balance the cost and effectiveness of advertising.

3. Innovation will always be rewarded in the current market atmosphere. If we look at the current market position of P&G, seeing that the they are currently placed in a good position with good presence in multiple products for different customer segments. Thus after studying the market and weighing all the aspects, it could make sense for P&G to consolidate and cut the less profitable businesses.

5 0

2 years ago

Read 2 more answers

You have two job offers. Alpha Firm offers a salary of $40,000 per year with no bonuses, while Beta Firmoffers a base salary of

ozzi

Answer:

$40,000 per year; $37,500 per year; $40,000.

Explanation:

From the question above, we are given the following parameters; Alpha Firm offers a salary = $40,000 per year + no bonuses, "Beta Firm offers a base salary of $35,000 per year with a 25% chance that you will receive an annual bonus of $10,000".

So, to answer the question,the expected salary of working for Alpha Firm will surely be = $40,000 per year.

At Beta Firm the expected salary is = $35,000 + 0.25($10,000) = $37,500.

Therefore, if I was risk neutral, the expected value of the year bonus offered by Beta Firm would need to be at least $40,000 for me not to be indifferent to the choice between the two options.

4 0

1 year ago

The following information is available for Wonderway, Inc., for 2018: Factory rent $ 28,300 Company advertising 20,200 Wages pai

garri49 [273]

Answer:

Please see answers below

Explanation:

1. Direct labor costs = wages paid to labourers

= $84,200

2. Manufacturing overhead costs = Factory rent + indirect production labor + utilities for factory + production supervisor's salary + factory insurance + depreciation on factory equipment

= $28,300 + $1,900 + $30,600 + $30,800 + $13,700 + $27,400

= $132,700

3. Prime cost = Direct labor + Direct material

= $84,200 + $35,600

= $119,800

4. Conversion cost = Direct labor + Manufacturing overhead

= $84,200 + $132,700

= $216,900

5. Total manufacturing cost = Direct labor + Direct material + Manufacturing overhead

= $84,200 + $35,600 + $132,700

= $252,500

6. Period expense = Company advertising + Depreciation for president vehicle + President's salary + Sales commission

= $20,200 + $8,190 + $61,100 + $7,530

= $97,020

8 0

2 years ago

Rock City is a community in the Midwest with a population of 23,000 people. Three dental clinics serve the city and the surround

stepladder [879]

Answer:

Sole proprietorship.

Explanation:

Sole proprietorship is a type of business fully owned and controlled by the owner and the gains and losses of the business fall solely on him as there is no separate legal entity between him and the business.

One major attribute is that the owner is in control of his business. Even though he may have some people working with in the management of the company , the key factor that determines company status is ownership.

As long as there in no partnership agreement with other parties , he remains the sole owner.

6 0

1 year ago