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Elenna [48]
2 years ago
6

Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $ 2

37,400 $ 36,500 February 251,400 39,800 March 336,600 41,500 Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March
Business
1 answer:
inn [45]2 years ago
4 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Budgeted Sales:

January $ 237,400

February 251,400

March 336,600

Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible.

Cash collection March:

Cash sales= 336,600*0.3= 100,980

Credit Sales March= (336,600*0.7*0.1)= 23,562

From February= (251,400*0.7*0.5)= 87,990

From January= (237,400*0.7*0.36)= 59,824.8

Total= 272,356.8

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Answer:

The correct answer is E. master production schedules.

Explanation:

Master production schedules is not an input to the aggregate planning process  all other options are its input,

Aggregate planning process is an attempt to respond to predicted demand within the constraints set by product, process and location decisions.

Hence, master production schedules is not a relevant input for this planning process but can be a result of the aggregate planning process. In other words master production schedule is formed after aggregated planning has been completed.

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What is the maximum period of time that a personal services contract for temporary consultant services may be awarded?
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Answer: 1 year

Explanation: According to the Defence Federal Acquisition Regulation under 237.106, personal service contracts that apply to consulting or expert services will be limited to one year. However this will only apply to duties that are temporary (limited to 1 year, or 12 months), or non cumulative days (needs to be 130 days or more that are broken up within a year). During this time the officer contracting the service will enter into a contract, make an order, or exercise options for various services that do not exceed 1 year.

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2 years ago
Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoe
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Revenue: $500,000

Shoes: $250,000

Shoe boxes: $1,000

Advertising: $500

Rent: $1,000

Depreciation: $25

Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion?

A. 25.13% more shoes

B. 20.08% more shoes

C. None of the above, but I could calculate this with the information I am given.

D. None of the above, I cannot calculate this with the information I am given.

Answer:

Option A. 25.13% more shoes

Explanation:

Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.

<u>The Benefit drawn before 10% promotion proposal:</u>

Revenue:                           $500,000

Shoes:                               ($250,000)

Shoe boxes:                         ($1,000)

Advertising:                           ($500)

Rent:                                     ($1,000)

Depreciation:                          ($25)

Profit                                    $247,475

<u>The Benefit drawn before 10% promotion proposal:</u>

Revenue:                           $450,000

Shoes:                               ($250,000)

Shoe boxes:                        ($1,000)

Advertising:                          ($500)

Rent:                                    ($1,000)

Depreciation:                         ($25)

Profit                                   $197,475

Now we can calculate how much additional sales must be required to justify the promotion.

Sales Increase Required = (Initial Profit - Before Promotion) / Profit After Promotion

Sales Increase Required = ($247,475  - $197,475) / $197,475

Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.

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Giving the following information:

The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.

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Cf= cash flow

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Year 3= 500/1.05^3= 431.92

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