Assume that a certain product has the demand function given by

Molly C. has just purchased a pasta manufacturing business. Molly’s new business produces ravioli, tortellini, and other cheese-

Juli2301 [7.4K]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Molly estimates that she will use 10,000 pounds of cheese filling each month. The costs associated with each pound of cheese filling consist of $10.64 direct materials, $14.96 direct labor, $14.60 variable overhead, and $13.00 fixed overhead. Pasta Specialties (PS) has approached Molly and offered to supply 10,000 pounds of cheese filling each month for $405,200.

Make in house:

Unitary cost= 10.64 + 14.96 + 14.60= $40.2

Nose of the fixed cost are avoidable, therefore they are taken into account to make the decition.

Buy= 405,200/10,000= $40.52

Cost difference= 40.2 - 40.52= -0.32

8 0

2 years ago

If the buyer perceives a buyer-supplier relationship is in the desirable region on the purchaser-supplier satisfaction matrix, b

vfiekz [6]

Answer:

The correct answer is the option D: share information to find a mutual solution.

Explanation:

To begin with, the concept known as "Supplier Satisfaction" has long been a dead term for many companies in all the industries, however very recently the acquisition of this method has been implemeted in order to increase the benefits that it brings to understand better the relationship with the costumer. Moreover, the model itself seeks for the proper creation of a high quality relationship established in communication between the costumer and the supplier who is able to make a confortable sale and create and environment suitable for the buyer. That is why that the correct action will be to share information in order to find a mutual solution in the case where the situation is in that desirable region of the matrix.

4 0

1 year ago

Huxley Building Supplies' last free cash flow was $1.75 million. Its free cash flow growth rate is expected to be constant at 25

Kipish [7]

Answer:

Ans. The best estimate of the current intrinsic stock price is $36.51

Explanation:

Hi, first, we have to determine the cash flows for year 1 and 2 (when the stock grows at 25%) and then, the terminal value (using the constant growth rate of 6%). Then we have to bring to present value all the cash flows (terminal value included) and since the terminal value is an amount of money expressed in dollars of year 2, we have to bring it to present value, discounted at the WACC.

Normally, we need to use the rate of return of the equity but in this case this is not possible due to the lack of information. What we can do is to find the value of the company´s equity, which means that If we bring to present value tha cash flows of year 1 and 2 and the terminal value (using thte WACC as a discount rate) and add the short term invesments and substract the debt of the company, we can find the equity´s value and divide it by the outstanding shares, therefore obtaining a good aproximation to the intrinsic value of the stock. It all goes like this.

Note. Notice that 1.75 millions were the last cash flow so we need to find the cash flow for year 1 (CF1)

$(PV)CF1=\frac{1.75(1+0.25)}{(1+0.12)^{1} } =1.9531$

$(PV)CF2=\frac{1.75(1+0.25)^{2} }{(1+0.12)^{2} } =1.9463$

$(P.V)Terminal Value=\frac{1.75(1+0.25)^{2}(1+0.06) }{(0.12-0.06)} *(\frac{1}{(1+0.12)^{2} } )=38.51$

Where (PV) means present value.

Now, let´s do the following operation

$EquityValue=(PV)allCashFlows+ShortTermInvest-Debt$

$EquityValue=(1.9531+1.9463+38.51)+5-7=36.51$

Then, the equity´s value is $36.51 millions.

Now, the intrinsic value of the stock is the value of its equity divided by the number of outstanding shares.

$Intrinsic ValueStock=\frac{36.51}{1} =36.51$

So, the intrinsic value of Huxley Building Supplies' is $36.51

Best of luck.

7 0

2 years ago

Lesson 6 problem-solving practice sales tax, tips, and markup 1. skateboards inez wants to buy a skateboard but she does not kno

notsponge [240]

After you multiply 7% to 80 you will be left with 5.60, then you add 5.60 to 80 to get $85.60. So if she has any more than $85.60 then she will be able to buy the skateboard

6 0

1 year ago

Read 2 more answers

Síntesis interview a classmate about his or her pastimes, weekend activities, and favorite sports. use these questions as guidel

steposvetlana [31]

<span>) Imagine you have a friend who lives in an exciting place you have never visited: New York City, Ciudad de Mexico, etc. You are about to visit your friend for the first time, you are excited and have many things you want to do, but also have a lot of questions. On a sheet of paper, write a letter to your friend to prepare for your trip. </span>

4 0

1 year ago

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