Answer
Financial advantage from further processing $31
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>
<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further . </em>
<em> $</em>
Sales revenue after the split off point( 64+64) 128
Sales revenue at the split-off point (16+47) <u> 63</u>
Additional sales revenue 65
Further processing cost ( 15+19) <u>(34
)</u>
<em>Net income after further processing 31</em>
Financial advantage from further processing $31
Answer:
Explanation:
We will apply the annuity formula because payments are made equally at year end for 40 years. we would have applied compound formula if total payment was made at year 40.
Total Payment = $40 mill.
Annual Payment = 2 mill.
Total time for payments =20
Ir = 8%
A)
Present Value of innings applying annuity formula
P=R(1-(1+i)^-n)/i
P=2(1-(1+8%)^-20)/8%
P=2(1-0.2145)/8%
P=2*9.8181
P=19.6362
B)
Present Value of innings applying annuity formula with Advance payment
Value of the first payment is same because it is paid at day 1 so present value is same i.e $2 mill.
Present Value of other 19 Payments with 19 years time from today
Applying the same formula
P=R(1-(1+i)^-n)/i
P=2(1-(1+8%)^-19)/8%
P=2(1-0.2317)/8%
P=2*9.6035
P=19.207
Present value of 1st payment at Year.0 = 2 mill
Present value of 19 payment at Year.0 = 19.207
Total Value =2+19.207 = $21.02 mill
Answer:
B. with an exclusivity clause limiting the number of products a celebrity can endorse.
Explanation:
An exclusivity clause is a legal document that allows a celebrity to work exclusively with the issuer of contract and restricts them from participating in any marketing activity of any individual or any company without getting into the contract with them. The exclusivity clause is also helpful in creating a competitive advantage by limiting with whom your business partner should work. Advertiser can use exclusivity clause to protect themselves against overexposure.
Answer:
The correct answer is letter "B": Convene a meeting and ask Sam to substantiate the need for a new team leader. Review the ethics policy and company hiring guidelines. Express your concerns about the budget.
Explanation:
First of all, the company must <em>confirm if there is really a need for a team leader in the assembly area</em>. If so, the benefits of having such a professional must be pointed out. If approved, because of the rumors of Sam hiring a friend for the position,<em> the ethics policy and company hiring guidelines must be clarified</em> in order to let Sam know that the new leader must be selected after the evaluation of a number of applicants who can could suitable for the position. Last but not least, the details of the reasonable income this new leader will receive should be explained to find out <em>what would be</em> <em>the impact on the company's budget</em>.
<u>Answer:</u> Speculation.
<u>Explanation:</u>
Carlos tries to make a profit through exchange rates. Carlos is a speculator who tries to make profit through market fluctuations. The strategy is a risky strategy as the speculators based on their knowledge about the market make decisions accordingly.
Carlos is planning to receive the appreciated value of British Pounds so that he receives the same amount as mentioned in the contract but makes profit out of exchange rates and books FX profits in his books of accounts.
