Answer:
James, Inc.
The financial break-even point in:
Sales unit = 8,322
Sales dollars = $724,014
Explanation:
a) Data and Calculations:
Cost of machine purchased = $594,000
Estimated economic life = 6 years
Salvage value = $0
Sales price per pair of shoes = $87
Variable cost per pair of shoes = 37
Contribution margin per pair = $50
Discounted contribution = $50 * 0.909 = $45.45
After-tax contribution = $35.45 ($45.45 * 0.78)
After-tax contribution margin ratio = $35.45/$87 * 100 = 41%
Fixed cost per year = $295,000
Corporate tax rate = 22%
Discount rate = 10%
Break-even point = Fixed cost/After-tax contribution
= $295,000/$35.45
= 8,322 units
= $724,014 ($87 * 8,322)
Administrative restructuring; done at managerial level for effective decision making and delegation of power down the order.
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Explanation:
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According to the narration given in the above statement the general manager is of the view that too much layer of manager will hamper the decision making and effective delegation of work.
So, after a detailed study of manager’s role and responsibility at the level he decided to downsize the structure from 10 managers to 3 managers who will report to him for making effective decisions.
He has delegated power to the new managers and by doing so it has reduced the burden of the Joe. By doing this the organisation objectives and goals can be met at the targeted time.
Answer:
Sampling plan can be considered as an arrangement of intelligent advances which empowers a specialist to choose sample from the populace and to appraise answer for the current issues.
In the given case revolutionary photo copy machines has been created by an organization. Here the task for the research is to decide or assess that what number of photograph copiers are need that the organizations of City Cleveland may purchase. This can be likelihood samplings techniques can be chosen for building up an inspecting plan. Two likelihood inspecting strategies will be proper for this errand. They are Simple Random Sampling and Systematic Sampling.
The example outline is all around characterized which are the organizations of the city Cleveland. From this example outline the analysts needs to isolate the organizations into bunches into little, medium and huge dependent on the representatives of each organization. Here the specialist should break down each organization. Through straightforward arbitrary sampling the scientist can gather the information of each organization. Here each organization in the example casing will be taken for assessment. Through orderly inspecting the scientist can list the organizations of city Cleveland for investigation. The scientist can choose any organization arbitrarily for examination.
Since the each organization of city Cleveland ought to be considered for examine and each organization must be bunch into three a methodical research is required. In this way the two plans Simple Random Sampling and Systematic Sampling plans are utilized.
Answer:
$20,000
Explanation:
Bond discount at the issuance of bond:
= Worth of Bonds issued - [(Worth of Bonds issued ÷ 100) × Issue price]
= 705,000 - [($705,000 ÷ 100) × 98]
= $705,000 - $690,900
= $14,100
Bond Payable = $705,000
Unamortized bond discount:
= Bond discount at the issuance of bond - Amortized amount
= $14,100 - $8,200
= $5,900
Redemption Value of Bond = Retired price of bonds × 7,050
= 102 × 7,050
= $719,100
Loss on retirement on Bond:
= Redemption Value of Bond - (Worth of Bonds issued - Unamortized bond discount)
= 719,100 - (705,000 - 5,900)
= 719,100 - 699,100
= $20,000
