Kate is very pleased with the results of the first year of year on a high note, with the company's reputation for producing quality cards leading to more bsi. ness than she can currently manage. Kate is considering expanding and bringing in several emlay- ees. In order to do this, she will need to find a larger location and also purchase more this means additional financing. Kate has asked you to look at her year-end financial statements as if you were a banker considering giving Kate a loan. Comment on your findings and provide calcula- tions to support your comments. equipment. All
Q: Having assessed the changing dietary needs of your town, you are considering investing in a new…
A: Note: Cost of Market survey will be included in the initial investment as the cost is yet not…
Q: Russian Noor Ltd. Having assessed the changing dietary needs of your town, you are considering…
A: NPV means PV of net benefits which will arises from the project in coming years. NPV is equal to the…
Q: Mike is considering adding a deli to his general store. The remodeling expenses and shelving costs…
A: Payback period It is a time the project will need for recovering the investment cost.
Q: Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company…
A: Accounting cost can be defined as the cost of inputs and the payments that are made in order to hire…
Q: ou work in a Finance department and are asked to analyze the economics of an existing jet, which…
A: The question is based on the concept of Financial Management.
Q: Russian Noor Ltd. Having assessed the changing dietary needs of your town, you are considering…
A: Capital budgeting analysis is important to understand the viability of a project.
Q: Kate is very pleased with the results of the first year of operations for Kate's Cards. She ended…
A: Financial Statement: A financial statement is the complete record of financial transactions that…
Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize…
A: Introduction A public Corporation have a option to raise capital by issuing stock to shareholder's.…
Q: Emma made the following two statements during a meeting with her financial adviser: • “I am pleased…
A: The impact of psychology on investors and financial markets is referred to as the study of…
Q: We really need to get this new material – handling equipment in operation just after the new year…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Sanjana’s Sweet Shoppe operates on the boardwalk of a New England coastal town. The store only opens…
A: operating costs: For customers below 25000, Operating costs: $25000 For above 20000 customers,…
Q: “We really need to get this new material-handling equipment in operation just after the new year…
A: Purchases budget refers to the type of budget which reflects the estimate quantity of inventory the…
Q: Ely, Athirah, Ain, and Aimi planned to open up a cosmetic distributor outlet in Cyberjaya next year.…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Sanjana’s Sweet Shoppe operates on the boardwalk of a New England coastal town. The store only opens…
A: Gross Margin = Number of Customers x Gross Margin Operating Profit (Loss) = Gross Margin - Operating…
Q: “We really need to get this new material – handling equipment in operation just after the new year…
A: Answer 1: Schedule of expected cash disbursement for inventory purchase Working note: Purchases…
Q: Dawn is preparing a home office to perform subcontract projects for midsized architect firms. She…
A: The MARR (minimum acceptable rate of return) is a rate that is the minimum rate use to evaluate the…
Q: Russian Noor Ltd. Having assessed the changing dietary needs of your town, you are considering…
A: The capital budgeting is a technique that helps to analyze the profitability of the project and…
Q: Sanjana's Sweet Shoppe operates on the boardwalk of a New England coastal town. The store only opens…
A: For customers below 35,000,, operating costs would be $45,000 For customers above 35000, operating…
Q: The owner of a small printing company is considering the purchase of additional printing equipment…
A: Decision tree analysis: The different decisions that can be taken by a decision maker and its…
Q: Suppose you are the financial manager of a large national food processing firm. In your travels, you…
A: A capital budgeting decision is a process of investing in capital expenditure. A capital expenditure…
Q: “We really need to get this new material – handling equipment in operation just after the new year…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Just the second question. First is info to answer the second.
A: Calculate the stock price after adjusting for dividend as follows:
Q: You have been doing a good business at your auto service & repair shop, Business is brisk! You have…
A: 6)Total revenue per week sales of 30 brake replacements @ $300 each.…
Q: Having assessed the changing dietary needs of your town, you are considering investing in a new…
A: Net Present Value is the difference between present value of cash inflow and cash outflows. Positive…
Q: Jerry Burnside, controller of Pitts Industries, Inc., tells you about a meeting of sev- eral top…
A: While making any decision on product manufacturing, it is always advisable to compare the relevant…
Q: WHICH WILL IT BE? Georgia Isaacson and her son Rubin have been thinking about buying a business.…
A: NPV is the net current worth of cash flows that are expected to occur in the future. It is…
Q: A large pet-food manufacturer is considering buying a small boutique cat food business to add to…
A: PV(Present Value) is current value of any future amount or equalized series of amount. It is…
Q: Chris Guthrie was recently hired by S&S Air, Inc., to assist the company with its short-term…
A: Convertible Bonds: The convertible bonds are securities that can be converted into common stock at…
Q: pu are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers,…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Based on this table below write a business memo addressed to the president recommending the best…
A: Given: The income statement for Grayslake Novelty for last year is shown below: Sales $992,000…
Q: Employee retention is a major goal for Dynamic Thermoforming, Inc.Feedback from the employees had…
A: Net Asset Value refers to the concept which shows the market value per share of the mutual fund. It…
Q: Wilson Bryant Air Conditioning, a Middle Georgia HVAC company, wanted to build a web-based project…
A: Interest rate = 14% N = 5 years Loan = 5,000,000 Profit in year 2 - 4 = 1,500,000 80% of profit will…
Q: You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers,…
A: a. Years 0 1 2 3 4 5 Revenue 0 794,000 1,580,000 869,000 477,950 262,872.5 Variable cost 0…
Q: If you a controller and the company always aim sustainable net income, but the company for this year…
A: Net income of the business means all income remaining in the business after deducting all the…
Q: REQUIRED/MISSING INFORMATION What is the Net Present Value (NPV) of this venture?
A: A capital budgeting plan means the strategic plan for the company to track its growth. The business…
Q: Charle's Furniture Store has been In business for several years. The firm's owners have described…
A: Hello, since the student has posted multiple questions, we will answer the first two requirements…
Q: A friend told you that she was scrolling through her Twitter feed and found out that three days ago,…
A: In this case the information obtained by my friend on her Twitter feed is a public information i.e.…
Q: “We really need to get this new material – handling equipment in operation just after the new year…
A: Budget: It is a plan which includes estimation of future expenses or revenues. It is a financial…
Q: You are in a committee meeting with the Head of Marketing and Head of Finance and are presenting a…
A: Credit sales of the business means goods and services sold to the customers on account. They have…
Q: Employee retention is a major goal for Dynamic Thermoforming, Inc.Feedback from the employees had…
A: The matching concept explains the equal contribution from employers in the 401(K) retirement program…
Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: You are considering entering the shoe business. You believe that you have a narrow window for…
A: Calculation of Value of Call:The value of call is $3.54.Excel Spreadsheet:
Q: Jerry Burnside, controller of Pitts Industries, Inc., tells you about a meeting of sev- eral top…
A: While making any decision on product manufacturing, it is always advisable to compare the relevant…
Step by step
Solved in 2 steps with 1 images
- Company XYZ is specialized in producing and selling smart watches. The company currently has two products and is planning to improve it profits in the coming years. The company is thinking of introducing a sales commission to encourage its sales people to make more sales and improve company's profitability. When designing the sales commission the company should base the sales commission on: O a. The color of the product Ob. None of the given answers O C. The number of employees O d. The selling price O e. The contribution marginCompany XYZ is specialized in producing and selling smart watches. The company currently has two products and is planning to improve it profits in the coming years. The company is thinking of introducing a sales commission to encourage its sales people to make more sales and improve company's profitability. When designing the sales commission the company should base the sales commission on: O a. The color of the product O b. The number of employees O c. None of the given answers O d. The contribution margin O e. The selling price on The variable cost ratio is calculated as: O a. The selling price per unit / variable cost per unit ved F1 F2 F3 E4 F5 F6 F7 F9 F10 @ 23 $4 % & 1 2 3 4 7 V 8 Q W R Y U D G Hi J K 1. C BYNÍ M { V CO ALFunTime Company produces three lines of greeting cards: scented, musical, and regular.Segmented income statements for the past year are as follows: Kathy Bunker, president of FunTime, is concerned about the financial performance of her firmand is seriously considering dropping both the scented and musical product lines. However,before making a final decision, she consults Jim Dorn, FunTime’s vice president of marketing.Required:1. CONCEPTUAL CONNECTION Jim believes that by increasing advertising by $1,000($250 for the scented line and $750 for the musical line), sales of those two lines wouldincrease by 30%. If you were Kathy, how would you react to this information?2. CONCEPTUAL CONNECTION Jim warns Kathy that eliminating the scented and musicallines would lower the sales of the regular line by 20%. Given this information, would it beprofitable to eliminate the scented and musical lines?3. CONCEPTUAL CONNECTION Suppose that eliminating either line reduces sales of theregular cards by…
- Company XYZ is specialized in producing and selling smart watches. The company currently has two products and is planning to improve it profits in the coming years. The company is thinking of introducing a sales commission to encourage its sales people to make more sales and improve company's profitability. When designing the sales commission the company should base the sales commission on: a. The number of employees b. None of the given answers c. The contribution margin d. The selling price e. The color of the productCompany XYZis specialized in producing and selling smart watches. The company currently has two products and is planning to improve it profits in the coming years. The company is thinking of introducing a sales commission to encourage its sales people to make more sales and improve company's profitability. When designing the sales commission the company should base the sales commission on The color of the product a O The contribution margin b O The number of employees.cO The selling price d O None of the given answers .e OValencia Manufacturing Company manufactures and sells musical gadgets. You have just begun yoursummer internship at Valencia Manufacturing. To expand sales, the business is considering paying acommission to its sales team. You have been asked to compute 1) the new break-even sales figure, and 2) theoperating profit if sales increase by 10% under the new sales commission plan. She is confident that you canhandle the task, because you learned CVP analysis in your accounting class.The following data was obtained:Selling price per unit $200Variable expenses per unit: Direct Material $40Direct Labour $32Variable Manufacturing Overhead $18Fixed expenses: Fixed Manufacturing Overhead $190,000Fixed Selling Costs $115,000Fixed Administrative Costs $135,000Production/Sales 6,000 UnitsAfter collecting your data, you performed your analysis and submitted a memo to your manager, who was verypleased with the work done. Your report indicated that the new sales commission plan would result in…
- ! Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 30 Beta Direct materials Direct labor $18 23 16 Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 10 8 19 21 15 11 18 13 Total cost per unit $115 $87Valencia Manufacturing Company manufactures and sels musical gadgets. You have just begun your summer intermship at Valencia Manufacturing. To expand sales, the business is considering paying a commission to its sales team. You have been asked to compute 1) the new break-even sales figure, and 2) the operating profit if sales increase by 10% under the new sales commission plan. She is confident that you can handle the task, because you learned CVP analysis in your accounting class. The following data was obtained: Selling price per unit Variable expenses per unit: $200 $40 $32 $18 Direct Material Direct Labour Variable Manufacturing Overhead Fixed expenses: Fixed Manufacturing Overhead Fixed Selling Costs Fixed Administrative Costs $190,000 $115,000 $135,000 6,000 Units Production/Sales After collecting your data, you performed your analysis and submitted a memo to your manager, who was very pleased with the work done. Your report indicated that the new sales commission plan would…The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Product Debbie Trish Sarah Mike Sewing kit Demand Next year (units) 63,000 55,000 48,000 Selling Price per Unit $ 21.00 $7.50 $36.50 $ 16.00 $ 9.30 48,000 338,000 The following additional information is available: Direct Materials $ 5.60 $ 2.40 $ 8.39 $ 3.30 $4.50 Direct Labor $ 4.20 $1.44 $ 7.80 $ 5.40 $ 0.84 a. The company's plant has a capacity of 94,310 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $12 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $650,000 per year. Variable overhead costs are $4 per direct labor-hour. d. All of the…
- Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to increased market competition, the CFO of Stylish Sitting has grown worried about the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price $ 73.00 Per-unit variable costs: Invoice cost 40.45 Sales commissions 17.45 Total per-unit variable costs $ 57.90 Total annual fixed costs: Advertising $ 54,500 Rent 77,000 Salaries 225,000 Total annual fixed costs $ 356,500 If 38,900 office chairs were sold, Stylish Sitting's operating income (πB) would be: (Do not round intermediate calculations.) Multiple Choice $230,890. $270,890. $200,890. $330,890.Suppose that you have been given a summer job as an Intern at Issac Alrcams, a company that manufactures sophisticated spy cameras for remote-controlled millitary reconnalssance alrcraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financlal statements before approving the loan. Requlred: Classify each cost listed below as elther a product cost or a perlod cost for the purpose of preparing financial statements for the bank. Costs Product Cost or Period Cost 1. Depreciation on salespersons' cars. 2. Rent on equipment used in the factory. 3. Lubricants used for machine maintenance. 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors' salaries. 7. Heat, water, and power consumed in the factory. 8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) 9. Advertising costs.…The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Product Demand Next year (units) Debbie Trish Sarah Mike Sewing kit Selling Price per Unit $ 15.50 $ 6.00 51,000 43,000 $ 25.00 36,000 40,000 $ 11.00 326,000 $ 8.10 The following additional information is available: Direct Materials $ 4.40 $ 1.20 $6.59 $ 2.10 $ 3.30 Direct Labor $ 2.70 $ 1.20 $ 4.50 $ 3.30 $0.90 a. The company's plant has a capacity of 118,450 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $6 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $530,000 per year. Variable overhead costs are $3 per direct labor-hour. d. All of the…