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Daniel [21]
2 years ago
5

Recently, the Polish General Corporation, well-known for manufacturing appliances and automobile parts, initiated a $13 billion

project to produce automobiles. A great deal of learning on the part of management and employees was required. Even though pressure was mounting to get a new product to market in early 2012, the production manager of the newly formed automobile division insisted on almost a year of trial runs before sales started because workers have to do their jobs 60 to 100 times before they can memorize the right sequence. The launch date was set for early 2013. What are the consequences of using this approach to enter the market with a new product?
Business
1 answer:
vladimir1956 [14]2 years ago
5 0

Answer:

Polish General Corporation is a new player in automobile production, their background for manufacturing automobile parts is an advantage as they can insource for parts.

The approach of giving ample time for trials is a good one. It will be a competitive advantage for the company if their products are synonymous with quality.

Their first product in the automobile market place should set a standard on which the company can build a long lasting brand.

So the decision by the manager to prolong trials is a wise one. The employees will also have mastered the process at the end of this period, having practices 60 - 100 times. Based on the expertise learnt products produced in the future will also have high quality.

Explanation:

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Given the following information, determine the activity rate for setups. Activity Total Activity-Base Usage Budgeted Activity Co
Oksanka [162]

Answer:

Activity Rate for Setup = $18

Explanation:

Given

Activity Total Activity-Base Usage Budgeted Activity Cost

Setups 10,000 $180,000

Inspections 24,000 $120,000

Assembly (dlh) 80,000 $400,000

Activity Rate is calculated by: Budget Activity Cost/Activity Base Usage

Where Activity Base (for Setup) = 10,000

Budget Activity Cost = $180,000

So, Activity Rate for Setup = $180,000/10,000

Activity Rate for Setup = $18

Hence, the calculated activity Rate for setups is $18

6 0
2 years ago
Read 2 more answers
Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will recei
makvit [3.9K]

Answer:

a. What amount of taxable dividend income, if any, does Madison recognize in 2009?

Madison doesn't have to recognize any income because she is not getting any. Only after Madison decides to sell his stocks will he recognize any taxable income if she makes a gain.

b. What is Madison's income tax basis in her new and existing stock in Badger Corporation, assuming the distribution is non-taxable?

Madison current basis is $100 per stock, and after the stock dividend it will be $100 / 1.1 = $90.91 per stock

c. How would you answer questions a and b if Madison was offered the choice between 1 share of stock in Badger for each 10 shares she owned or $100 cash for each 10 shares she owned in Badger?

then the cash dividend would be $10 per stock, which results in $10 x 1,000 = $10,000 taxable income. Her basis in the stock will remain not change.

8 0
2 years ago
Honeycutt Co. is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $109,250 in debt.
velikii [3]

Answer: $47.50

Explanation:

The price pr share given debt and the number of shares if the company had both an all equity structure and a mixed structure can be expressed as;

Price per Share = Debt Value / (Number of Shares under All-equity plan - Number of shares under mixed plan)

Price per share = 109,250 / (15,000 - 12,700)

= 109,250 / 2,300

= $47.50

4 0
2 years ago
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions
Vikentia [17]

Answer:

1. $77,200 Cost of goods available for sale & 1,800 units available for sale

2. 400 units in ending inventory

3. FIFO $18,400, LIFO $18,000, WEIGHTED AVERAGE $17,760 and SPECIFIC $18,200

4. FIFO $46,200, LIFO $45,800, WEIGHTED AVERAGE $45,560 and SPECIFIC $46,000

Explanation:

1. Cost of goods available for sale is computed as follows:

1-Jan  600   45   27,000

10-Feb  400   42   16,800

13-Mar  200   27   5,400

21-Aug  100   50    5,000

<u>5-Sep  500   46   23,000 </u>

     1,800    77,200

2.Units ending inventory is computed by deducting available units for sale 1,800 by the units sold 1,400 equals 400 units.

3. Ending inventory is computed as follows:

            FIFO  

5-Sep  400 x $46 = $18,400.00

                    LIFO  

Jan 1        400 x $45 = $18,000.00

           SPECIFIC    

10-Feb  100 x $42 = 4,200.00

21-Aug    50 x $50 = 2,500.00

<u>5-Sep  250 x $46 = 11,500.00</u>

        400        18,200.00

          WEIGHTED AVERAGE  

Jan 1      600 x $45.00  = 27,000.00

10-Feb   400 x $42.00  = 16,800.00

<u>13-Mar   200 x $27.00  =   5,400.00</u>

            1,200     41.00      49,200.00

<u>Sales    (800)  x $41.00 =  (32,800.00)</u>

Total      400     $41.00      16,400.00

21-Aug   100  x  $50.00   = 5,000.00

<u>5-Sep    500  x $46.00    = 23,000.00</u>

Total    1,000      $44.40       44,400.00

<u>Sale     (600)       $44.40     (26,640.00)</u>

Balance  400       $44.40      17,760.00

4. computation of gross profit are as follows:

                       FIFO  

SALE    

15-Mar  800.00   75.00   60,000.00  

<u>10-Sep  600.00   75.00   45,000.00</u>  

           1,400.00              105,000.00  

   

COGS         FIFO  

Date      Units  Price  Amount

1-Jan        600   45   27,000  

10-Feb     200   42   8,400  

10-Feb 200    42  8,400  

13-Mar      200   27   5,400  

21-Aug      100   50   5,000  

<u>5-Sep       100   46   4,600 </u> 

TOTAL  1,400   252   58,800  

GROSS PROFIT    $46,200 ($105,000 - $58,800)

   

                            LIFO  

SALE    

15-Mar  800   75.00   60,000.00  

<u>10-Sep  600   75.00   45,000.00 </u>

TOTAL 1,400             105,000.00  

   

COGS         LIFO  

Date      Units  Price  Amount

1-Jan      200   45        9,000  

10-Feb   200   42        8,400  

10-Feb   200 42         8,400  

13-Mar   200   27          5,400  

21-Aug  100    50          5,000  

<u>5-Sep    500   46         23,000</u>  

           1,400                 59,200  

GROSS PROFIT    $45,800  (105,000 - 59,200)

   

SALE                SPECIFIC  

Date      Units  Price  Amount

1 Jan        600   75     45,000  

10-Feb      300  75     22,500  

13-Mar     200   75      15,000  

21-Aug       50   75        3,750  

<u>5-Sep      250   75       18,750</u>  

TOTAL    1,400          105,000  

   

COGS SPECIFIC  

Date      Units  Price  Amount

01-Jan     600   45      27,000  

10-Feb     300   42       12,600  

13-Mar      200   27        5,400  

21-Aug        50   50       2,500  

<u>5-Sep       250   46        11,500  </u>

TOTAL   1,400              59,000  

GROSS PROFIT    $46,000 (105,000 - 59,000)  

          WEIGHTED AVERAGE  

Date      Units  Price     Amount

1-Jan       600   45.00   27,000.00

10-Feb    400   42.00   16,800.00

1<u>3-Mar    200   27.00    5,400.00 </u>

             1,200   41.00  49,200.00

<u>Sale       (800)   41.00  (32,800.00)</u>

Total       400   41.00   16,400.00

21-Aug    100   50.00   5,000.00

<u>5-Sep     500   46.00   23,000.00 </u>

Total    1,000   44.40   44,400.00

<u>Sales   (600)  44.40   (26,640.00)</u>

Balance  400   44.40   17,760.00

Therefore, the computation of cost of goods sold is,

COST OF GOODS SOLD  

15-Mar  800   41.00   32,800.00

<u>10-Sep  600   44.40   26,640.00 </u>

Total     1,400             59,440.00

SALE  

15-Mar     800   75.00   60,000.00

<u>10-Sep     600   75.00   45,000.00</u>

Total     1,400                105,000.00

Gross profit    $45,560.00 (105,000 - 59,440)

7 0
1 year ago
Read 2 more answers
You are a consulting firm intern and your job is to help a client choose investment projects. Your client, RealEstate, is a youn
vredina [299]

Answer:

Project 1, 2 and 3 should be rejected.

Explanation:

This problem required us to tell which project we should not accept. To solve this we have to apply this rule that is accept the project with positive NPV.

The detail calculation are given below.

The discount factors to be used for CFO, CF1, CF2 and CF3 is 1, 0.74, 0.55 and 0.41 respectively. It is calculated by using following formula.

               DF= (1 + i)^-n (n is period and i is 35%)

So now calculating NPV of each project by multiplying cashflow with discount factor.

Project 1 = -100+ (50*0.74 ) + (50*0.55) + (50*0.41) = -15 M dollars

Project 2 = -80 + (40*0.74) + (45*0.55) + (50*0.41) = -5.15 M dollars

Project 3 = -70 + (30 *0.74) + (40*0.55) + (50*0.41) = -5.3 M dollars

Project 4 = -60 + (30 *0.74) + (40*0.55) + (60*0.41) = 8.8 M dollars

Project 5 = -50 + (25 *0.74) + (30*0.55) + (70*0.41) =  13.7 M dollars

4 0
2 years ago
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