Answer:
8,000= fixed overhead
Explanation:
Giving the following information:
Bell’s Shop can make 1000 units of a necessary component with the following costs:
Direct Materials $24000
Direct Labor 6000
Variable Overhead 3000
Fixed Overhead ?
The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally.
Buy= 41,000/1,000= $41
Total Unitary cost= 24,000 + 6,000 + 3,000 + fixed overhead
41,000= 33,000 + fixed overhead
8,000= fixed overhead
Answer:
A. Assuming that employees would understand the content of the PowerPoint slides
Explanation:
One of the most common mistakes that can be made is assuming that the receiver on the other end of the communication chain would understand quite well, what message, you as the sender, is passing across.
In the scenario cited in the question above, the new benefit offerings that have been developed after the overhauling, of which Mike has taken his time to explain in a power point presentation just few months before employees would be required to enroll for the program, must have been misunderstand by the employees. The multiple emails reveals that the employees do not really understand the content, and this comes as a surprised to Mike. We can infer that Mike must have made the mistake of assuming that the employees would understand the content of the PowerPoint slides.
Answer:
Option D. Provide incentives to employees, and reduce consultation charges.
Explanation:
The reason is that the company's survival is based on the cash generation mechanism which is because of increased sales. If the sale of the company are higher then it is more likely that the company is able to breakeven which means it will reach no profit and no loss position very easily. To increase the chances of survival of the business, the employees must be motivated by paying them higher pays for better service delivery and higher commissions for grabbing higher sales. Furthermore, the company must also reduce the initial consultation charges to encourage to purchase of their services and acquire greater share of the market which will grow the business.
Answer:
Using the discount cash flow model to value the company, we can say that the company is worth $85 million / 12% = $708.33 million
Each stock should be worth approximately $708.33 million / 100 million = $7.0833 per stock
If the company uses the cash to finance new projects, then future cash flows should be approximately $97.75 million, and the company's value = $97.75 million / 12% = $814.583 million. This represents a 15% increase in value. The stock price should also increase by 15% to $8.1458 per stock.
If the company instead decides to repurchase stocks using all the cash, then it could repurchase 35.29 million stocks. Since we are assuming that the company's future cash flows wouldn't be affected by this decision, then the company's total value will still be $708.33 million, but each stock would be worth much more = $708.33 / 64.71 million stocks = $10.95. This represents a 34.36% increase with respect to the other alternative of investing the cash.
The issue here, is that this situation is not very realistic. It is not normal for a company to use all of its cash to repurchase stocks since it would result in a huge increase in stock prices (stock prices are set by supply and demand). Also, this would also result in a sharp increase in the cost of equity due to higher risks.
A. Instead of a tornado’s striking Hardwoods’ land, the state in which Hardwoods operates passes a law making it illegal for any lumber
<span>companies to cut down trees for the purposes of selling their wood. This environmental measure causes Hardwoods to go out of business.</span>
