Answer:
The company should not develop the new product as The operation cash flow is too low as compared to the OCF that results in zero NPV
.
Explanation:
In order to know if the company should develop the new product we would have to make the following calculations:
The No, of units the company expects to sell = Market share*Market size = 4.5%*120,000 = 5,400
Total contribution = No. of units sold*contribution margin per unit = 5400*87.20 = $470,880
Fixed costs = $418,000
Profit before tax = Total contribution - Fixed costs = $470,880 - $418,000 = $52,000
Net profit = (1-Tax rate)*Profit before tax = (1-34%)*$52,000 = $34,320
Since there are no depreciation costs(assumed), net profit is the operating cash flow.
Therefore, the company should not develop the new product as The operation cash flow is too low as compared to the OCF that results in zero NPV
.
Answer:
Decrease by $132,100
Explanation:
Computation of the given data are as follow:-
We can calculate the Operating Income by using following formula:-
Fixed Cost = Fixed Cost * Dropped Rate
= $193,000 * 30/100
= $57,900
So, Operating Income = Sales - Variable Cost - Fixed Cost
= $,1050,000 - $860,000 - $57,900
= $132,100
According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.
Answer:
In the description section underneath the overview per the particular context is illustrated.
Explanation:
- Wanda's philosophy about becoming a distributer of enhance performance resulted in increased market demand due to consumer perception that her goods are stronger and therefore more advantageous.
- This contributes to consumption growth, moving the consumer surplus towards Wanda's goods to the right, contributing towards increased costs.
- One more scenario maybe though in the immediate future, her Wanda commodities demonstrate no positive effects, resulting throughout a decline in terms of trade.
Throughout this situation, Wanda might answer by genuinely changing the productivity of the latter's goods including displaying a certain clinical significance to obtain a competitive advantage for customers.
Answer:
$171,619.20
Explanation:
The computation of the budgeted accounts payable balance at the end of November is shown below:
= Budgeted cost of raw materials purchases in November × following month percentage
= $286,032 × 60%
= $171,619.20
As 40% is paid in the month of purchase whereas 60% is paid to the following month. So, we recognized 60%, not 40%
