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Papessa [141]
1 year ago
5

The sea wharf restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspape

r advertising and radio advertising. management decided that at least 25 percent of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be
Business
1 answer:
Andreas93 [3]1 year ago
5 0
From what I understood in the problem, the total budget that covers all types of media is only $1,000 per month. For the allocation, each type of media would get at least 25% of the budget. If we infer on this information, there should only be 4 types of media, at least. This is because four 25% portions would equal to 100%. If it exceeds 25% for each of the four types, it would be over the $1000 budget. With that being said, it is also possible that there will be 3 or 2 types of media. Nevertheless, let's just stick to the least assumption of 25% for each of the 4 types.

If local newspaper advertising is one of the four types, then:

$1000(25%) = $250

It would get $250 from the overall budget.
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According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the le
Alina [70]

Answer:

According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.

A. True

Explanation:

The DCF (Discounted Cash Flow) method of stock valuation is based on the assumption of the time-value of money.  This approach considers that the cash flow that is received today is much more than the same amount of cash flow received any other time in the future.  And the time of the future receipt or payment affects the amount of the cash flow, with decreasing consequences based on increasing time into the future.

3 0
1 year ago
Differential Analysis for a Lease or Buy Decision Sloan Corporation is considering new equipment. The equipment can be purchased
Arlecino [84]

Answer:

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

Explanation:

Alternative 1 (lease):

less price per year $30,000 x 5 years = $150,000

Alternative 2 (purchase):

initial investment = $125,500 + $1,600 = $127,100

maintenance cost per year = $2,500 x 5 years = $12,500

<h2>                   Differential Analysis</h2>

                                              alternative 1      alternative 2     differential

                                              lease                 purchase          effect

Revenues                             $0                      $0                    $0

Costs:    

Purchase price                     $0                -$125,500         -$125,000

Freight and installation      $0                    -$1,600              -$1,600  

Repair and maintenance          $0                   -$12,500           -$12,500

(5 years)    

Lease                                    -$150,000                 $0              $150,000

(5 years)    

Income / loss                       -$150,000           -$139,600           <u>$10,400</u>

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

4 0
2 years ago
In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold. Last yea
wolverine [178]

Answer:

Cost of Goods Sold, after adjustment for overapplied manufacturing overhead, for the year must have been $69,000.

Explanation:

From the question, we have:

Applied manufacturing overhead cost = $29,000

Actual manufacturing overhead cost = $27,000

Cost of Goods Manufactured for the year = $71,000

Overapplied manufacturing overhead = Applied manufacturing overhead cost - Actual manufacturing overhead cost = $29,000 - $27,000 = $2,000

Therefore, we have:

Cost of Goods Sold = Cost of Goods Manufactured for the year - Overapplied manufacturing overhead = $71,000 - $2,000 = $69,000

Therefore, Cost of Goods Sold, after adjustment for overapplied manufacturing overhead, for the year must have been $69,000.

8 0
1 year ago
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing​ 45,000 parts is​ $14
Morgarella [4.7K]

Answer:

$2.07 per unit

Explanation:

Currently 45,000 units produced

total cost= $72,000 (variable) + $70,000 (fixed) = $142,000

average total cost per unit = $142,000 / 45,000 units = $3.16 per unit

if the company outsources the production of the part:

total cost = $72,000 + ($70,000 x 30%) = $72,000 + $21,000 = $93,000

average total cost per unit = $93,000 / 45,000 units = $2.07 per unit

if Blue Ridge spends more than $2.07 per unit, it will be spending more money by outsourcing the part than by producing it.

e.g. $2.10 per unit

total costs = ($2.10 x 45,000) + ($70,000 x 70%) = $94,500 + $49,000 = $143,500 which is higher than $142,000.

3 0
2 years ago
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own bus
ohaa [14]

Answer: $4,000

Explanation: Economic profit can be defined as the difference between the total revenues generated from operations and cost incurred plus any opportunity cost taken.

Opportunity cost is the cost of next best alternative foregone, that is loss of profits that occurred due to choosing one alternative over other. In the given case loss of interest and loss of highest salary are opportunity cost for Jacqui .

Hence,

economic profit = revenues - (interest + salary)

                        =  $50,000 - ($1000 + $45,000)

                        = $4,000

7 0
1 year ago
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