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r-ruslan [8.4K]
1 year ago
5

Geoff hesitated as he read the fast food menu, unsure whether he should supersize his order of delicious golden French fries. Do

ing so would increase his cost from $0.99 to $1.59 and just might provide him the nutrition he needed to make it through the second half of his day at the office. Of course, if he finished his hamburger and the usual amount of fries, he would simply throw the extra ones away. However, if he failed to supersize his order, he would have to take a candy bar break mid-afternoon and they weren't exactly giving them away in the break room vending machines. He would likely need two candy bars, which sold for $0.95 each. What is Geoff's target service level
Business
2 answers:
erma4kov [3.2K]1 year ago
5 0

Answer:

Geoff's target service level is 0.76

Explanation:

Doing so would expand his expense from $0.99 to $1.59 and could very well give him the sustenance he expected to endure the second 50% of his day at the workplace. Obviously, in the event that he completed his cheeseburger and the typical measure of fries, he would essentially discard the additional ones. In any case, on the off chance that he neglected to supersize his request, he would need to take a confection break mid-evening and they weren't actually offering them away in the reprieve room candy machines. He would probably require two pieces of candy, which sold for $0.95 each.

postnew [5]1 year ago
3 0

Answer:

0.76

Explanation:

Doing so would expand his expense from $0.99 to $1.59 and very well might give him the nourishment he expected to endure the second 50% of his day at the workplace. Obviously, in the event that he completed his burger and the standard measure of fries, he would essentially discard the additional ones. Nonetheless, in the event that he neglected to supersize his request, he would need to take a confection break mid-evening and they weren't actually offering them away in the reprieve room candy machines. He would almost certainly require two pieces of candy, which sold for $0.95 each.

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Superb Ltd. Is a well diversified company engaged in development of real estate, tourism and
Fittoniya [83]

Answer:

Since the company's debt level is very low, then it should probably issue new debt. The advantage of issuing debt is that debt is always cheaper than equity. E.g. the company issues a bond with a 10% coupon rate and the corporate tax rate is 30%. The after tax cost of debt = 10% x (1 - 30%) = 7%.

Issuing bonds with a 10% coupon rate is not something impossible, and actually the interest rate is pretty high. Some companies issue bonds at 4 or 5%. But to raise new capital offering a return on equity of 7% or less is extremely odd and difficult. Generally, the cost of equity of normal corporations tends to be about twice as higher as the cost of debt.

8 0
2 years ago
Enviro Company issues 14.00%, 10-year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, th
ivann1987 [24]

Answer: a. $648,125

b. $551875

Explanation:

a. Using the implied selling price of 129 5/8. what are the issuer's cash proceeds from issuance of these bonds?

Bonds Face Value = $500,000

Cash Proceeds will then be:

= 129.625% × $500,000

= $648,125

b. What total amount of bond interest expense will be recognized over the life of these bonds?

20 payments of $35000 = $700000

Pee value at maturity = $500000

Total repaid = $1200000

Less: Amount borrowed = $648125

Total bond Interest expense = $551875

7 0
2 years ago
Imagine you have just bought some property and notice that the trees on the slope have curved trunks. what type of landslide eve
tigry1 [53]

The type of landslide event that the property most likely has is CREEP. Creep is the slowest type of mass wasting that requires years of gradual movement to have an effect on a slope. Slopes creep because of the expansion and contraction of a surface sediment as well as the pull of gravity. 

7 0
2 years ago
Suppose a manufacturing plant is considering three options for expansion. The first one is to expand into a new plant (large), t
sp2606 [1]

Answer:

a. $50,000

b. $77,500

c. $27,500

d. Large expansion or plant

Explanation:

a. What is the highest Expected Monetary Value (EMV)?

1. EMV of Large expansion = ($100000×0.50) + ($10000×0.25) + (-$10000×0.25)

EMV of Large expansion =

2. EMV of Medium expansion = ($40000×0.50) + ($40000×0.25) + ($5000×0.25)

EMV of Medium expansion = $31,250

3. EMV of Small expansion = ($15000×0.50) + ($15000×0.25) + ($15000×0.25)

EMV of Small expansion = $15,000

The highest EMV is $50,000 which is the EMV of Large expansion.

b. What is Expected Value with Perfect Information (EVwPI)?

EVwPI is obtained by adding together the expected value of the highest profit from each of the expansions as follows:

EVwPI = ($100000×0.50) + ($40000×0.50) + ($15000×0.50)

EVwPI = $77,500

c. What is the organization willing to pay for perfect information?

This requires the calculation of Expected Value of Perfect Information (EVPI). This can be obtained as follows:

EVPI = EVwPI - EVwoPI

Where EVwoPI denotes Expected Value without Perfect Information and it is is the highest EMV of $50,000 which is the EMV of Large expansion obtained in a above.

Substituting the figures, we have:

EVPI = $77,500 - $50,000 = $27,500

d. Which of the expansion plans should the manager choose?

The manager should choose the large expansion because it has the highest or maximum EMV of $50,000.

4 0
2 years ago
Read 2 more answers
During the month, Cellum, Inc. sold 100 cells at a price of $100 each. Each cell was sold at a 1% sales discount. Cellum had ret
gavmur [86]

Answer:

Net Sales for the month ended is equal to $9,702.

Explanation:

Sale = 100 x $100 = $10,000

Discount = $10,000 x 1% = $100

Sales Return = $198

Net Sales = Sales Price - Sales Discount - Sales Return

Net Sales = $10,000 - $100 - $198

Net Sales = $9,702

Net Sales for the month ended is equal to $9,702.

$20 is an expense and it is not an contra revenue account. So, it is not considered in net sales calculation.

6 0
2 years ago
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