Answer:
Objective function (maximize)
Constraints
- Availabitily of salt: 
- Availability of herbs: 
- Availability of flour: 
Explanation:
This a linear programming problem. We have an objective function (in this case it is the profit) that we want to optimize, but complying with constraints (in this case, the availability of ingredients).
The objective function can be defined taking into account the profits of the two kind of chips:
The constraints can be expressed taking into account the amount of ingredients every unit of chip needs and stating that it has to be less or equal to the availability of this ingredient:
- Availabitily of salt:
- Availability of herbs
- Availability of flour
With these expressions the linear programming problem can be solved.
Answer:
Product U23N
$
Sales 730,000
Less: Variable cost 350,000
Contribution 380,000
Less: Avoidable fixed manufacturing expenses 144,000
Avoidable fixed selling and administrative cost <u>93,000</u>
Net contribution <u> 143,000</u>
Product U23N should not be discontinued because it has a positive contribution. If the company discontinued the product, the total profit of the company reduces by $143,000.
Explanation:
In this case, we need to determine the net contribution of the product. Net contribution is the excess of sales over variable cost and avoidable fixed cost. Product U23N should not be discontinued because it has a positive net contribution. If the product is deleted, there will be a reduction in total profit of the company by $143,000.
Answer:
A. $162,500
B. $17,500
Explanation:
Data
EBIT = $25,000
Tax rate = T = 35%
Discount Rate = r = 10%
Requirement A: Market Value
The Market value of the firm can be calculated by using the following formula
Market Value = 
Market Value = 
Market Value = $162,500
Requirement B: Total value of firm If issues $50,000 of debt paying 6% interest
The market value of the firm increases by the present value of the Interest tax shield
The present value of tax shield = Amount of debt x Tax Rate
The present value of tax shield = $50,000 x 35%
The present value of tax shield = $17,500
The market value of the firm will be increased by $17,500
Answer= The entry to record this transaction would include:
A debit to Organization Expenses for $5,000.
A credit to common stock for $4,000 and Paid in capital in excess of par-Common Stock of $1,000
Explanation:
Common stock = 400 x $10= $4000
Accounts Debit Credit
Organisation expense $5,000
Common stock $4,000
Paid in capital in excess of par value
of common stock $1,000
( $5000 - $4000)
Answer: To remove bias when estimating the proportion of working adults living in urban, suburban, and rural areas.
Explanation: In simple words, stratification refers to the process in which different sections of the society are grouped on the basis of one or more general factors.
In the given case, the company wants to estimate the minutes of working adults in the region and the region is grouped into urban, suburban and rural.
Thus, the random selection from different regions is done so that no bias takes place regarding the number of adult working in these three different areas.
