A. how much would the firm’s revenue change if it lowered price from $12 to $10? is demand elastic or inelastic in this range?

Sony has a better opportunity to reach the potential Millennial market segment, compared to unestablished manufacturers, because

8090 [49]

Answer:

full spectrum of product offerings

Explanation:

Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers.

8 0

1 year ago

Project A has a predicted payback period of 2.5 and Project B has a predicted payback period of 5. Based on this information we

anastassius [24]

Answer:

A. more information should be gathered before deciding on which project, if either, is desirable.

Explanation:

The lower Payback Period is not sufficient information to decide which project is more profitable. The payback period indicates when in the life of a project the initial investment principal cash flow is achieved.

But to decide about a certain project it is better to know the interest yield, it is also important to get the life of the project and other information.

For example:

a.- 250 investment 100 per year payback in 2.5-year life 3 years

b.- 500 investment 100 per year payback in 5-year life 20 years

While A payback occurs before project B is better

6 0

2 years ago

John Budd is the sole shareholder of Ral Corp., an accrual-basis taxpayer engaged in wholesaling operations. Ral’s retained earn

Annette [7]

Answer: $27,000

Explanation:

Even though for GAAP reasons, revenue is to be recognized only when earned as per the Accrual principle of accounting, this is not so for the calculation of taxable income.

Taxable income is to be calculated on cash basis which means that taxes are to be paid on revenue when the revenue is received in cash and not when it is earned.

As Ral Corp. received the money in 2020, they are to include the entire amount of $27,000 in their 2020 taxable income for rent revenue.

4 0

1 year ago

Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $38

KATRIN_1 [288]

Answer:

Since the NPV is positive, then the company should buy and install the machine press.

Explanation:

We have to calculate the NPV of the project using the discount cash flow model:

the initial investment = $385,000 (depreciable machinery) + $20,000 spare parts + $3,100 = $408,100

depreciation expense (five year MACRS class)

$385,000 x 20% = $77,000
$385,000 x 32% = $123,200
$385,000 x 19.20% = $73,920
$385,000 x 11.52% = $44,352
$385,000 x 11.52% = $44,352
$385,000 x 5.76% = $22,176

Cash flow year 1 = [($145,000 - $77,000) x (1 - 22%)] + $77,000 = $130,040

Cash flow year 2 = [($145,000 - $123,200) x (1 - 22%)] + $123,200 = $140,204

Cash flow year 3 = [($145,000 - $73,920) x (1 - 22%)] + $73,920 = $129,362

Cash flow year 4 = {[($145,000 - $44,352) x (1 - 22%)] + $44,352} + $3,100 (recovered working capital) + $45,000 (salvage value) + $4,736 (tax credit on impairment loss*) = $175,693

*since the carrying value at the end of year 4 is $66,528 and the salvage value is $45,000, an impairment loss will = $21,528. This will result in lower taxes by $21,528 x 22% = $4,736

the NPV of the project = -$408,100 + $130,040/1.09 + $140,204/1.09² + $129,362/1.09³ + $175,693/1.09⁴ = -$408,100 + $119,303 + $118,007 + $99,891 + $124,465 = $53,566

Since the NPV is positive, then the company should buy and install the machine press.

4 0

2 years ago

A sales manager creates a weekly group sales target of $10,000 for her employees. To entice her group members to achieve this ta

Novay_Z [31]

Answer:

pooled task interdependence.

Explanation:

This is the most interdependent type. Although each business unit accomplishes separate tasks, they provide contributions to the main common goal. If one part fails, the whole project or goal may also fail. While working independently, team members still share loose or unstructured responsibilities to achieving goals.

3 0

2 years ago