1) A firm sells 1,000 units per week. Suppose the average variable cost is $40, and the average cost is $95.

Custom Cabinets spends its product research dollars as follows: 32% goes to improving existing products, 28% to creating new pro

Tasya [4]

Answer:

0.55 million

Explanation:

The research cost that was spent on new products for new customer is 20% of $2.75 million.

Mathematically,

Cost Incurred on creating new product for new customer = $2.75m * 20%

= 0.55 million

7 0

2 years ago

Duffert Industries has total assets of $1,080,000 and total current liabilities (consisting only of accounts payable and accrual

iris [78.8K]

Answer:

ROIC is 9.26%

ROE is 12.63%

Explanation:

According to the given data we have the following:

Total assets = $1,080,000

Total liabilities = Current liabilities + Debt + Common equity = $1,080,000

D/(D + E) = 0.40

D / ($1,080,000 - 100,000) = 0.40

D = $392,000

Common equity = Total liabilities - Current liabilities - Debt = $1,080,000 - 100,000 - 392,000= $588,000

BEP = 0.15 = EBIT/TA

= EBIT/$1,080,000

Therefore, EBIT = $162,000

In order to calculate the ROIC we would have to make the following calculation:

ROIC = [EBIT(1 – T)]/(D + E) = [$151,200(0.6)]/($392,000 + $588,000) = 9.26%

ROIC is 9.26%

To calculate the ROE we would have to calculate first net income from income statement as follows:

EBIT=$151,200

Less: Interest ($392,000 x 7%) 27,440

EBT= 123,760

Less: Tax 40% 49,504

Net Income= 74,256

Therefore, ROE = NI/E = $74,256/$588,000 = 12.63%

ROE is 12.63%

6 0

2 years ago

Discuss the various factors that account for the way divergence can be achieved in advertising creativity. Find an example of an

m_a_m_a [10]

Innovation , Creativity and Eye Catching and is the best way by which Divergence can be achieved.

Explanation:

1. Innovation- by understanding the new trends and customs in the market one have more diversified advertisement.

2. Creativity- More the creativity of the person , more audience can be targeted.

3. Eye Catching- Advertisement should be pleasing to attract the potential customers.

Example - "Apple" Its produced have been famous worldwide because of its innovation and creativity that sets it apart from the other competitors.

6 0

2 years ago

During the past year, Arther Anderson Services paid $360,800 in interest along with $48,000 in dividends. The company issued $23

vlada-n [284]

Answer: $385800

Explanation:

The amount of the cash flow to creditors will be calculated thus:

Begining total liabilities = $225000

Ending total liabilities = $200000

Interest = $360800

Cash flow to creditors will be:

= Begining total liabilities - Ending total liabilities + Interest

= $225000 - $200000 + $360800

= $385800

3 0

2 years ago

Bess wrote four checks last month, and these were the only transactions for her checking account. According to her check registe

Wittaler [7]

Answer: $184.34

Bess issued four checks with amounts $175.17, $175.53, $175.35,and $184.34. With the total amount she issued, she expected her balance based on her cash register to be $869.96, but as per bank statement, her balance is $1054.13.

To get the amount of check which is not cleared yet, we have to deduct the balance in the cash check register from that of the bank statement:

$1054.13-$869.96 =184.17

$184.34 is the best answer because it is the last he wrote and the discrepancy of 0.17 may be due to some bank charges Bess had not recorded.

3 0

2 years ago

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