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2 years ago

8

Financial performance measures ______. are all based on leading indicators may cause managers to make decisions that won't be op

timal in the long run focus on past, not future performance encourage managers to focus on improving customer satisfaction

1 answer:

AnnyKZ [126]2 years ago

6 0

Answer:

x

Explanation:

You might be interested in

A retail dealer in garments is currently selling 24,000 shirts annually. He supplies the following details for the year ended 31

mamaluj [8]

Answer:

a) Calculate Break-even Point in sales revenue and number of shirts sold.

20,000 shirts
$16,000,000

b) What is the margin of safety of the dealer expressed as a percentage .

16.67%

c) Assume that 30, 000 shirts were sold during the year, find out the net profit of the firm.

$2,000,000

d) Assuming that in the coming year, an additional staff salary of P1,000, 000 is anticipated, and price of shirt is likely to be increased by 15%, what should be the break-even point in number of shirts and sales?

15,625 shirts
$14,375,000

e) If taxation rate is 12.5%, and fixed cost increase to 6 000 000 what is the level of sales that must be achieved to a targeted profit of P8 000 000.

47,322 shirts
$43,536,240

Explanation:

selling price per shirt $800 x 24,000 = $19,200,000

variable cost per shirt $600 x 24,000 = $14,400,000

total fixed costs $4,000,000

net income $800,000

contribution margin per unit = $800 - $600 = $200

break even point = $4,000,000 / $200 = 20,000 shirts x $800 = $16,000,000

margin of safety = (current sales - break even point) / current sales = ($19,200,000 - $16,000,000) / $19,200,000 = 16.67%

if 30,000 shirts were sold:

contribution margin 30,000 x $200 = $6,000,000

fixed costs $4,000,000

net income $2,000,000

if sales price increases to $920, contribution margin = $320

fixed costs increase to $5,000,000

break even point = $5,000,000 / 320 = 15,625 shirts x $920 = $14,375,000

fixed costs increase to %6,000,000

targeted profit $8,000,000 + tax rate = $9,142,857

sales target = ($6,000,000 + $9,142,857) / $320 = 47,321.43 ≈ 47,322 shirts

3 0

2 years ago

Today is your 20th birthday, and your parents just gave you $5,000 that you plan to use to open a stock brokerage account. You p

Alex Ar [27]

Answer:

You anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.

Explanation:

To calculate this, we use the formula for calculating the future value (FV) and FV of ordinary annuity as appropriate as given below:

FVd = D * (1 + r)^n ......................................................................... (1)

FVo = P * {[(1 + r)^n - 1] ÷ r} ...................... (2)

Where,

FVd = Future value of initial deposit or balance amount as the case may be = ?

FVo = FV of ordinary annuity starting from a particular year = ?

D = Initial deposit = $5,000

P = Annual deposit =s $500

r = Average annual return = 12%, or 0.12

n = number years = to be determined as necessary

a) FV in five years from now

n = 5 for FVd

n = 4 for FVo

Substituting the values into equations (1) and (2), we have:

FVd = $5,000 * (1 + 0.12)^5 = $8,812

FVo = $500 * {[(1 + 0.12)^4 - 1] ÷ 0.12} = $2,390

FV5 = Total FV five years from now = $8,812 + $2,390 = $11,201

FVB5 = Balance after $5,000 withdrawal in year 5 = $11,201 - $5,000 = $6,201.

b) FV in 10 years from now

n = 10 - 5 = 5 for both FVd and FVo

Using equations (1) and (2), we have:

FV of FVB5 = $6,201 * (1 + 0.12)^5 = $10,928

FVo = $500 * {[(1 + 0.12)^5 - 1] ÷ 0.12} = $3,176

FV10 = Total FV 10 years from now = $10,928 + $3,176 = $14,104

FVB10 = Balance after $10,000 withdrawal in year 10 = $14,104 - $10,000 = $4,104

c) FV in 45 years from now

n = 45 - 10 = 35 for both FVd and FVo

Using equations (1) and (2), we have:

FV of FVB10 = $4,104 * (1 + 0.12)^35 = $216,690

FVo = $500 * {[(1 + 0.12)^35 - 1] ÷ 0.12} = $215,832

FV45 = Total FV 45 years from now = $216,690 + $215,832 = $432,522

Conclusion

Therefore, you anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.

5 0

2 years ago

Concept check 1. 54/32 converted to a mixed number is ________. 22/32 1.6875 1/38 1 22/32 2. The product of one and four thirty-

Ipatiy [6.2K]

Questions

Concept check

1. 54/32 converted to a mixed number is ________.a) 22/32 b)1.6875 c) 1/38 d)1 22/32

2. The product of one and four thirty-seconds and twenty thirty-seconds is ________. a)1 24/32 b)45/64 c)56/32 d)720

3. One and eight thirty-seconds divided by twelve thirty-seconds is ________. a)480/1024 20/1024 3 1/3 3 40/32

4. A u.S. Treasury bond is trading at 98 and 6/32. Convert this price to its decimal form. a)98.19 b)96.63 c)9/86 d)98.06

5. What is the percentage increase if the s&p 500 index is currently trading at 1,100 and rises 55 points? a)4.5% b)5% c)55% d)5.5%

Answer:

1.d)1 22/32

2. b)45/64

3. c)3 1/3

4. a)98.19

5. b)5%

Explanation:

1. 54/32 converted to a mixed number is ________.a) 22/32 b)1.6875 c) 1/38 d)1 22/32

Mixed number is another way of writing improper fraction

54/32= 1 (54 - 32)/32

= 1 22/32

Therefore, option d) 1 22/32 is the correct option

2. The product of one and four thirty-seconds and twenty thirty-seconds is ________. a)1 24/32 b)45/64 c)56/32

d)720

One and four thirty-seconds = 1 4/32

Twenty thirty-seconds = 20/32

= 1 4/32 × 20/32

= 36/32 × 20/32

= 9/8 × 5/8

= 45/64

Therefore, option b)45/64 is the correct option

3. One and eight thirty-seconds divided by twelve thirty-seconds is ________. a)480/1024 b)20/1024 c)3 1/3 d)3 40/32

One and eight thirty-seconds = 1 8/32

Twelve thirty-seconds = 12/32

= 1 8/32 ÷ 12/32

= 40/32 ÷ 12/32

= 40/32 × 32/12

= 40/12

= 3 4/12

= 3 1/3

Therefore, option c) 3 1/3 is the correct option

4. A u.S. Treasury bond is trading at 98 and 6/32. Convert this price to its decimal form. a)98.19 b)96.63 c)9/86 d)98.06

98 and 6/32 = 98 + 6/32

We convert 6/32 to decimal

= 98 + 0.1875

= 98.1875

≈ 98.19

Therefore, Option a is the correct option

5. What is the percentage increase if the s&p 500 index is currently trading at 1,100 and rises 55 points? a)4.5% b)5% c)55% d)5.5%

Percentage increase = Increase/ Orginal amount × 100

Increase = 55 points

Original amount = 1,100

Percentage Increase = 55/1100 × 100

= 0.05 × 100

= 5%

Therefore, option b)5% is the correct option

8 0

2 years ago

A significant flaw in the payback method of capital budgeting is that____________ Group of answer choices it ignores cash flows

saul85 [17]

Answer:it ignores cash flows following the payback period

Explanation:

The payback method of budgeting does not consider inflows of cash that occur beyond or following the payback period, thus ignoring the profitability of one project as compared to another in the sense that one project may be more valuable than another based on future cash flows.

Also, Many capital investments provide complexity of cash flows as a result of investment returns over a period of many years, which also does not align with Payback method , because of this limitation, many businesses have adjusted by using their discretion to override this rule.

6 0

2 years ago

Blue Vibrance Company sells a product used in many manufacturing processes. The sales activity involves three activity areas: Ac

hjlf

Answer:

The answer and procedures of the exercise are attached in a microsof excel document.

Explanation:

After a research on internet I found the exercise and the questions better explained. The correct formulation is attached as an image. Please let me know that we are looking to the same exercise.

Please consider the data provided by you. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

3 0

2 years ago