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hram777 [196]
2 years ago
14

A company has the choice of either selling 1,000 unfinished units as is or completing them. The company could sell the unfinishe

d units as is for $4.00 per unit. Alternatively, it could complete the units with incremental costs of $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead, and then sell the finished units for $8.00 each. What should the company do?
Business
1 answer:
professor190 [17]2 years ago
5 0

Answer:

It is more convenient to sell the units unfinished by $500.

Explanation:

Giving the following information:

Units= 1,000

Unfinished:

Selling price= $4.00 per unit.

Complete:

Incremental costs= $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead

Selling price= $8.00 each.

We need to calculate the gross profit of each option and choose the more convenient:

Unfinished:

Gross profit= 1,000*4= $4,000

Complete:

Gross profit= 1,000*(8 - 4.5)= $3,500

It is more convenient to sell the units unfinished by $500.

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A homeseller wants to net $75,000. The commission is 9%, the loan payoff is $450,000, and closing costs are $36,000. What must t
gregori [183]

Answer:

The home must sell for $616,500 to be able to settle all costs

Explanation:

The net to the formula can be used to ascertain the price of the property , the formula is given below:

Net amount=Sales price*(100%-commission rate)

The net to the seller in this case is the amount that seller would receive and be able to settle mortgage and closing costs and still be left with $75000

Net amount =$75000+$450000+$36000

                     =$561000

commission rate is 9%

$561000=sales price*(100-9%)

$561000=sales price*91%

sales price =$561000/91%

                  =616483.52

But to the nearest $100 is $616500

6 0
2 years ago
Harvey County Choppers, Inc. is experiencing rapid growth. The company expects dividends to grow at 25 percent per year for the
densk [106]

Answer:

The current stock price should be at $60.15.

Explanation:

We have the dividend paid next year = 1.05 x 1.25 = $1.3125.

So, the present value of the growing annuity of dividend stream in the next 7 years is calculated as:

[ 1.3125 / (12% - 25%) ] x [ 1 - [ (1+25%)/( 1+12%) ] ^7 ] = $11.68.

The present value of the dividend stream from year 8 to infinity ( growing perpetuity):

[ 1.05 x 1.25^7 x 1.07/ (12% - 7%) ] / 1.12^7 = $48.47.

The price of the stock should be equal to the sum of present value of the two dividend stream above which is 11.68 + 48.47 = $60.15.

Thus, the answer is $60.15 per share.  

3 0
2 years ago
Johnson is an executive vice president at Conecom Hardware. He researches a proposal by a larger company, Openlane Hardware, to
WARRIOR [948]

Answer: Turn down the acquisition offer and prepare to resist a hostile takeover.

Explanation:

Since Johnson analysed the past performance of Openlane hardware and found out that past performance, conducting focus groups, and interviewing Openlane employees, Johnson concludes that the company has poor profit margins, sells shoddy merchandise, and treats customers poorly, then Johnson and Conecom Hardware should turn down the acquisition offer and prepare to resist a hostile takeover.

In this case, the merge between the companies will have a negative impact on Johnson and Conecom hardware due to the fact that the company has a bad reputation already and this can have an effect on Conecom. Therefore, the acquisition offer should be turned down.

5 0
1 year ago
Which of these is NOT an assumption that is made with regard to the basic EOQ inventory model? A. Annual demand requirements are
asambeis [7]

Answer:

The correct answer is letter "B": Variation in both demand and lead time exists, and is known.

Explanation:

The Economic Order Quantity (EOQ) is a method to keep track of inventory based on several assumptions. According to the EOQ <em>demand is known, constant and independent; lead time is known and constant</em>; inventory receipts are immediate and complete; discounts on amounts are not feasible; and, stock-outs can be avoided absolutely.

6 0
2 years ago
IMC is the process of coordinating all activities performed by entities of the distribution channel to make sure that the right
hram777 [196]

Answer:

IMC

a.True

Explanation:

The coordination of all distributive activities is a just part of the integrated marketing communication that is IMC, as it tries to offer seamless consumer experience.  For instance, if  Company XYZ fails to provide the right product in the right place and at the right time for consumers, then the essence of its IMC is lost.

IMC means Integrated Marketing Communication.  It is a marketing communication approach that integrates many components for marketing communication effectiveness.  The foundation component ensures that IMC approach provides the right products in the right place and at the right time for consumers.  IMC also integrates the corporate culture, with a focus on branding and customer satisfaction.

Since IMC aims to increase sales and profits, sharpen the brand's competitive advantage, and achieve brand loyalty, it means that the goals cannot be achieved when Company XYZ's distribution channel offers empty promises by not putting the right XYZ product in the right place and at the right time for consumers.

5 0
2 years ago
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